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.

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