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
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