The Hong Kong Monetary Authority (HKMA) on Wednesday said banks have made preparations to deal with any risks posed by potential US trade tariffs and are closely monitoring developments.

At a press briefing about the banking sector's performance in 2024, HKMA deputy chief executive Arthur Yuen noted that there's a lack of clarity in terms of US President Donald Trump's trade policies.

"Generally speaking, you can expect that if the US imposes tariffs on the rest of the world, the global trade system will suffer and that would actually also impact on businesses outlook, " Yuen said.

"We have actually asked our banks to stay on high alert on what's the impact of those to make sure that the risk management practices are fully in place for handling whatever is coming their way."