Hang Seng LCR falls to three-year low in Q2

Key facts

• Hang Seng Bank's LCR fell by 58 percentage points in Q2 2026.
• The bank's average LCR dropped to 247% from 305% in Q1.
• The decline was attributed to rising net cash outflows and shrinking HQLA.

Hang Seng Bank's liquidity coverage ratio (LCR) experienced a significant decline in the second quarter of 2026, falling by nearly 58 percentage points to 247%. This marks the lowest level since the third quarter of 2023 and represents one of the steepest drops among 124 major lenders analyzed by Risk Quantum. The decrease was primarily driven by an increase in net cash outflows and a reduction in the bank's holdings of high-quality liquid assets (HQLAs).