HSBC, 13 other lenders pledge to support Hong Kong SMEs amid financing struggles
Fourteen banks active in lending to the city’s small businesses have pledged to step up lending efforts to support their financing needs
Fourteen commercial banks in Hong Kong have pledged to keep funding small businesses in the city and quicken their approval review process, after authorities stepped in last month to tackle complaints about financing struggles.
The lenders, including HSBC, Standard Chartered and the Bank of China (Hong Kong), agreed to “not to change their risk appetite” in financing small and medium-sized enterprises (SME) and related credit approval standards, according to a statement by an industry task force.
They also pledged to reply within one month to requests on credit approval reviews, ensure effective implementation of SME support measures, treat customers fairly and allocate adequate manpower and resources to reassess troubled cases. They also agree to approve worthy mortgage loans within two weeks.
The commitments followed the first meeting held by the Taskforce on SME Lending on Thursday, formed last month to help overcome challenges faced by SMEs in getting funds to support or expand their businesses amid a slowdown in the economy.
The task force is co-chaired by Hong Kong Monetary Authority (HKMA) deputy CEO Arthur Yuen Kwok-hang and Hong Kong Association of Banks (HKAB) chairwoman Luanne Lim. The meeting was also attended by executives of banks that are active in the SME market, according to the statement.
The first meeting focused on the difficulties of some SMEs in obtaining loans and mortgages, the HKMA said in a statement. The task force has received 70 enquities and cases since its formation on August 23, including about unclear instructions and slow review on requests for debt moratorium.