Why Hong Kong banks are not going to crash anytime soon

Large debt burdens threaten financial stability across advanced economies but not in Hong Kong, says IMF.

The International Monetary Fund Global Financial Stability Report said that since the onset of the global financial crisis more  than five years ago, markets have struggled with a sharp repricing of credit risk.

From its origins in the U.S., IMF explained that subprime market to its current epicenter of bank and sovereign funding markets in the euro  area, the crisis has engulfed a widening number of private and public borrowers.

Weaknesses in borrower balance sheets, it said, remain at the forefront of  investors’ concerns, as high debt burdens weigh on economic performance while creating the risk of a confidence-driven deterioration in market dynamics.

Cells shaded in red indicate a value in the top 25 percent of a pooled sample of all countries shown from 1990 through 2010 (or longest sample available). Green shading indicates values in the bottom 50 percent, yellow in the 50th to 75th percentile.