Stockbrokers and investment banks (IBs) continued to meet their respective minimum capital adequacy requirements (capital adequacy ratio (CAR) of 1.20 times; risk weighted capital ratio (RWCR) of 8.00%). As at December 2022, stockbrokers’ average CAR was at 13.47 times, increasing from 12.82 times in 2021 while the IBs’ average RWCR increased to 38.76% (as at December 2022) from 37.35% in 2021.

Stockbroking intermediaries’ risk management controls were sufficiently robust to manage credit risk exposures arising from margin financing. The collateral coverage ratio as at December 2022 stood at 3.28 times (2021: 3.53 times), relative to the minimum required level of 1.30 times. 

Overall, stockbroking intermediaries managed their respective liquidity positions prudently and adequately.