Hong Kong Monetary Authority Chief Executive Joseph Yam said in Hong Kong Tuesday that he welcomed the U.S. Government's plan to help banks remove bad assets from their books.

Yam said the U.S. needs to introduce a prudent supervisory mechanism into its financial system, adding the newly-announced banks revival plan will help U.S. banks resume their loan business and support the country's economy.

In response to the capital inflow in the past two days, the Monetary Authority injected over 5 billion HK dollars (646 million U.S. dollars) into Hong Kong's banking system.

Yam said the move will further lower costs for banks to borrow money and will support the local economy.

Source:Xinhua