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HKMA Taskforce Targets SME Lending Hurdles
A newly formed taskforce on Small and Medium-sized Enterprise (SME) lending held its inaugural meeting today, focusing on addressing common challenges faced by SMEs in accessing and maintaining bank financing.
Banks Committed to Maintaining Risk Appetite
Co-chaired by Arthur Yuen, Deputy Chief Executive of the Hong Kong Monetary Authority (HKMA), and Luanne Lim, Chairperson of the Hong Kong Association of Banks (HKAB), the meeting brought together representatives from the HKMA, HKAB, and 14 banks actively involved in SME lending.
A key outcome of the meeting was the banks’ commitment to maintaining their current risk appetite for SME financing and ensuring the continued implementation of existing SME support measures. Additionally, the taskforce emphasized the importance of fair treatment for customers seeking financing, highlighting good practices such as increased transparency in credit approval processes and improved customer service.
While acknowledging the need for banks to uphold effective risk management to safeguard depositor interests, the taskforce also recognized the importance of understanding and supporting customers facing difficulties. In cases of prolonged non-repayment, banks will take necessary actions while ensuring these are carried out and communicated to customers in a supportive manner.
To further support the growth and transformation of SMEs, the HKMA and the banking industry will continue to collaborate with the commercial sector. Upcoming seminars and activities will focus on helping SMEs leverage data and technology to boost their productivity.
Taskforce Established to Enhance SME Support
The taskforce, established in August, aims to enhance support for SMEs seeking bank financing at both individual and industry levels. It has implemented a mechanism to review individual cases of SMEs facing difficulties in obtaining or maintaining bank financing, with the HKMA referring cases to the relevant banks for resolution. If common issues are identified among these cases, the taskforce will develop appropriate solutions for adoption across the banking industry.
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