The joint Taskforce on SME Lending, established by the Hong Kong Financial Authority (HKMA) and the Hong Kong Affiliation of Banks (HKAB), held its inaugural assembly on September 5, 2024. This key session aimed to handle challenges confronted by SMEs in acquiring and sustaining financial institution financing, in line with the Hong Kong Financial Authority.
Key Points Mentioned
Co-chaired by Mr. Arthur Yuen, Deputy Chief Government of the HKMA, and Ms. Luanne Lim, Chairperson of the HKAB, the assembly introduced collectively representatives from the HKMA, HKAB, and 14 banks energetic in SME lending. The dialogue coated a number of important subjects, together with:
- SME Assist Measures: Banks reaffirmed their dedication to the 9 SME help measures beforehand launched, making certain ongoing financing and help for sustainable SME growth.
- Danger Urge for food: Banks confirmed that their threat urge for food in the direction of SME financing and associated credit score approval requirements stay unchanged.
- Buyer Equity and Transparency: Because the Taskforce’s institution, round 70 enquiries and circumstances have been acquired, highlighting points resembling unclear financial institution info and prolonged credit score approval processes. Good practices, resembling enhanced transparency and streamlined utility processes, had been shared to enhance buyer expertise.
- Manpower and Assets: Banks pledged to allocate ample sources to evaluation credit score approval requests promptly, aiming to reply inside one month below regular circumstances.
- Residential Mortgage Mortgage Approval: To enhance transparency and effectivity in mortgage approvals, banks dedicated to informing candidates of selections inside 14 days of receiving all needed paperwork.
Dedication to Danger Administration
The Taskforce emphasised the significance of constant and efficient threat administration to guard depositor pursuits. For circumstances of extended non-repayment regardless of reduction measures, banks will take applicable actions whereas sustaining clear communication with affected prospects.
Future Initiatives
The Taskforce additionally mentioned additional selling financial institution help for SME growth, upgrades, and transformation. The HKMA and the banking business plan to prepare seminars and actions over the following two months to assist SMEs improve productiveness by means of higher use of knowledge and expertise. Particulars of those occasions will likely be introduced in the end.
Established in August, the Taskforce goals to strengthen help for SMEs at each particular person and business ranges. This features a mechanism for reviewing circumstances of SMEs dealing with financing difficulties, with the HKMA referring circumstances to related banks. The Taskforce will proceed to reinforce communication among the many HKMA, the banking business, and the business sector to higher perceive and help SME financing wants.
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