Worries about the coronavirus crisis continue to rise as banks escalate their preventive measures with 20-30 percent of branches expected to be closed.
«The Hong Kong Monetary Authority (HKMA) has received reports from banks that, in order to continue operating on this basis, some of their branches will need to be closed or operating hours will need to be shortened temporarily,» said the HKMA in a note, adding that the remaining branches will be open for restricted hours only.
Chinese lenders such as CMB Wing Lung Bank, Bank of Communications and ICBC have already made adjustments to their branch operations. Others such as HSBC, Standard Chartered and Hang Seng are reportedly reviewing the situation and making considerations.
Mainland Risk
In addition to closed branches, the regulator noted other operational adjustments including split-team arrangements and permission for staff to work from home where practicable. Banks such as Citi have already enacted internal processes to contain potential spread such as the requirement to work from home for 14 days after visiting Wuhan or the surrounding areas.
Despite escalating preventive measures throughout Hong Kong's financial sector, the local government response has been heavily criticized. A group of medical workers recently staged a demonstration demanding the closure of the Hong Kong-China border alongside deportation or isolation of visitors from Hubei province, in line with fellow special administrative region Macau. Such measures were all the more necessary following comments by Wuhan mayor Zhou Xianwang that 5 million people left the city before a delayed lockdown.
