Hong Kong Monetary Authority and HKAB Hold Inaugural Taskforce Meeting on SME Lending

The
joint
Taskforce
on
SME
Lending,
established
by
the
Hong
Kong
Monetary
Authority
(HKMA)
and
the
Hong
Kong
Association
of
Banks
(HKAB),
held
its
inaugural
meeting
on
September
5,
2024.
This
key
session
aimed
to
address
challenges
faced
by
SMEs
in
obtaining
and
maintaining
bank
financing,
according
to
the

Hong
Kong
Monetary
Authority.

Key
Issues
Discussed

Co-chaired
by
Mr.
Arthur
Yuen,
Deputy
Chief
Executive
of
the
HKMA,
and
Ms.
Luanne
Lim,
Chairperson
of
the
HKAB,
the
meeting
brought
together
representatives
from
the
HKMA,
HKAB,
and
14
banks
active
in
SME
lending.
The
discussion
covered
several
critical
topics,
including:

• 
  SME
  Support
  Measures:
  Banks
  reaffirmed
  their
  commitment
  to
  the
  nine
  SME
  support
  measures
  previously
  introduced,
  ensuring
  ongoing
  financing
  and
  support
  for
  sustainable
  SME
  development.
• 
  Risk
  Appetite:
  Banks
  confirmed
  that
  their
  risk
  appetite
  towards
  SME
  financing
  and
  related
  credit
  approval
  standards
  remain
  unchanged.
• 
  Customer
  Fairness
  and
  Transparency:
  Since
  the
  Taskforce’s
  establishment,
  around
  70
  enquiries
  and
  cases
  have
  been
  received,
  highlighting
  issues
  such
  as
  unclear
  bank
  information
  and
  lengthy
  credit
  approval
  processes.
  Good
  practices,
  such
  as
  enhanced
  transparency
  and
  streamlined
  application
  processes,
  were
  shared
  to
  improve
  customer
  experience.
• 
  Manpower
  and
  Resources:
  Banks
  pledged
  to
  allocate
  sufficient
  resources
  to
  review
  credit
  approval
  requests
  promptly,
  aiming
  to
  respond
  within
  one
  month
  under
  normal
  circumstances.
• 
  Residential
  Mortgage
  Loan
  Approval:
  To
  improve
  transparency
  and
  efficiency
  in
  mortgage
  approvals,
  banks
  committed
  to
  informing
  applicants
  of
  decisions
  within
  14
  days
  of
  receiving
  all
  necessary
  documents.

Commitment
to
Risk
Management

The
Taskforce
emphasized
the
importance
of
consistent
and
effective
risk
management
to
protect
depositor
interests.
For
cases
of
prolonged
non-repayment
despite
relief
measures,
banks
will
take
appropriate
actions
while
maintaining
clear
communication
with
affected
customers.

Future
Initiatives

The
Taskforce
also
discussed
further
promoting
bank
support
for
SME
development,
upgrades,
and
transformation.
The
HKMA
and
the
banking
industry
plan
to
organize
seminars
and
activities
over
the
next
two
months
to
help
SMEs
enhance
productivity
through
better
use
of
data
and
technology.
Details
of
these
events
will
be
announced
in
due
course.

Established
in
August,
the
Taskforce
aims
to
strengthen
support
for
SMEs
at
both
individual
and
industry
levels.
This
includes
a
mechanism
for
reviewing
cases
of
SMEs
facing
financing
difficulties,
with
the
HKMA
referring
cases
to
relevant
banks.
The
Taskforce
will
continue
to
enhance
communication
among
the
HKMA,
the
banking
industry,
and
the
commercial
sector
to
better
understand
and
support
SME
financing
needs.

Image
source:
Shutterstock