Bank run in Hong Kong. What is bank run bank run (or run on the bank)  panic  large amount of deposits withdraw  further withdraw  reserve requirement.

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Presentation transcript:

Bank run in Hong Kong

What is bank run bank run (or run on the bank)  panic  large amount of deposits withdraw  further withdraw  reserve requirement  bankruptcy

Case

1965 Chinese Bank Ming Tak Bank ( 明德銀號 ) a check of $7 million cannot be cleared

list of banks go bankruptcy Ming Tak Bank ( 明德銀號 ) Canton Trust and Commercial Bank ( 廣東信託銀行 ) Far East Bank ( 遠東銀行 )

Hang Seng Bank $80 million HKD withdraw in one day HSBC acquires 51% of Hang Seng Bank using $51 million

influence Stock crash Hangseng index drop from Jan to Nov 77.95

1983 Worried about Hong Kong prospects HKD depreciation (10 HKD: 1 USD) Hang Lung Bank ( 恆隆銀行 )

Influence Taken over by HK govt Linked exchage rate system

2008 The Bank of East Asia (BEA) ( 東亞銀行 ) news spread on internet Money withdraw by 200 million

Influence Fitch Ratings (international credit rating agency) long-term credit rating outlook cut to negative from stable

Bank run may… Stock crash Change in institution Lower bank credit

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