Hong Kong's banks not at risk from Dubai troubles -HKMA

HONG KONG/SHANGHAI, Nov 27 (Reuters) - Hong Kong's banking
sector is not at risk after Dubai asked creditors of
state-owned Dubai World and Nakheel to agree to a standstill on
billions of dollars of debt, said a Hong Kong Monetary
Authority spokesperson Friday.

"The financial problems of Dubai World should not pose any
systemic risk to the Hong Kong banking sector. The HKMA will
continue to monitor the situation closely," the spokesperson
said.

"The HKMA is checking with banks regarding their specific
exposures to Dubai World. However, based on data collected from
prudential returns, the Hong Kong banking sector's total
exposure to the United Arab Emirates, of which Dubai is a
member, amounted to only 0.39 percent of the total assets of
the banking sector at the end of September 2009," the
spokesperson said.

Dubai, where extravagant building projects have been
largely put on hold since the global financial crisis, has said
it would ask creditors of its flagship companies Dubai World
and property developer Nakheel to allow a delay in repayment of
their loans.

Banks with significant overseas exposure are under pressure
from deepening concerns about Dubai's debt problems, which hit
banking stocks in overseas markets.

(Reporting by Donny Kwok and Clare Zhang; Editing by Don
Durfee and Neil Fullick)
((donald.durfee@thomsonreuters.com; +852 2843-1649; Reuters
Messaging: donald.durfee.reuters.com@reuters.net))
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