FA You recently launched a mortgage insurance programme with Standard Chartered for 90% financing of equitable mortgages. What was the thinking behind the deal
Lam There is clearly a demand for a product like this in the Hong Kong market. You have a situation where mortgage financing has been a very safe and attractive business for banks. Banks have been able to charge high spreads and offer low loan to value financing. But with the introduction of the HKMC, the mortgage business became a commodity business very quickly as banks no longer had to think about funding costs and risks as long as they are producing mortgages which conform with the HKMC's...
