But if you look at the facts, total deposits in Hong Kong’s banking system rose by almost 3% in 2019. They increased by another 7.8% in the first eight months of this year. In simple terms, the strength of the Hong Kong dollar and this expansion of the deposit base tell us that there is more money coming in than going out. 13. Our banking system continues to be robust. Hong Kong’s banks have among the highest capital adequacy and liquidity ratios in the world. And despite a difficult operating environment, our classified loan ratio is still low – around 0.8%. And that resilience provides room for our banks to continue lending and providing relief measures to customers during the COVID-19 outbreak. 14. And our capital markets are thriving. Hong Kong was the world’s leading IPO centre last year. Although global markets were tested by extreme volatility in the first quarter, our capital markets have continued to function without incident. As several large Chinese companies that had listed in the US seek secondary listings in Hong Kong this year, we should once again achieve a very high ranking in the global IPO league table. 15. None of this happened by luck or by chance. The resilience we see now is the result of sustained efforts over many years. It’s the result of building capital and liquidity buffers into the banking system; and prudently managing the reserves that support the Linked Exchange Rate System.
BIS central bankers’ speeches  11  Figure 11 Long-term real interest rate (percent) 9,5  9,5  7,5  7,5  5,5  5,5  3,5  3,5  1,5  1,5 92  94  96  PRC 8 years (1)  98  00  PRC 20 years (1)  02  04  06  BCU 10 years (2)  08  10  BCU 5 years (2)  (1) PRCs are CBC bonds in UF with six-monthly equal installments (except for the last one), which can involve both interest and principal payments. (2)The BCU is a bond issued in UF, an inflation-indexed unit of account. Source: Central Bank of Chile. Figure 12 Banking loans to the private sector (y-o-y change, percent) Chile  Emerging economies 60  90  90  60  75  75  50  50  60  60  40  40  45  45  30  30  30  30  20  20  15  15  10  10  0  0  0  0  -15  -15  -10  -10  90  95 Housing  00 Consumer  05  10  Corporate (*)  06  Brazil China  07  08  Colombia Chile  09  10  Mexico  11  Peru  Turkey  (*) Sum of commercial and foreign trade credits.