Officials yesterday called on depositors to remain calm and shrug off messages questioning Bank of East Asia's (BEA) financial situation that has led to a run on the lender.

Financial Secretary John Tsang said the messages are "unfounded" and "malicious" and asked Hong Kong people to calm down.

Joseph Yam, chief executive of the Hong Kong Monetary Authority, reassured investors that Hong Kong's financial system was stable and resilient.

"I don't think Hong Kong's banking system would be affected very much by what is going on in the rest of the world," Yam told reporters at a hastily-called news conference in the afternoon.

"They (Hong Kong banks) have very high capital adequacy ratios and high liquidity and asset quality remains very good," he added.

The central bank chief also vowed to provide liquidity to BEA if needed, but BEA said it has sufficient cash at the moment to meet withdrawal demands and has not asked for help.

BEA's capital adequacy ratio exceeds 14.6 percent, well above the 8 percent required by the law. The bank's liquidity ratio is nearly 40 percent, higher than the minimum requirement of 25 percent.

Yam also said the lender's exposure to fallen Lehman Brothers Holdings Inc, the former Wall Street powerhouse being dismantled in US bankruptcy court, is minimal.

Meanwhile, BEA Chairman David Li said he would consider buying back shares as part of the efforts to restore investors' confidence in the bank.

"I will buy tomorrow," Li told reporters awaiting him at the airport last night when asked whether he will buy back shares in the coming days.

(HK Edition 09/25/2008 page2)