HSBC, 13 other lenders pledge to support Hong Kong SMEs amid financing struggles 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. The city’s 362,000 SMEs are the lifeblood of the economy, making up almost 99 per cent of all businesses and contributing 44 per cent to the private-sector employment and 50 per cent to the gross domestic product, according to a research by Quinlan & Associates in March. Yet, outstanding loans to SMEs have stagnated at about HK$1.8 trillion (US$230 billion), and more than one-third of loan applications between 2018 and 2023 from its research sample were either rejected or partially approved, the firm said. Retail-sector lawmaker Peter Shiu Ka-fai said the commitments from the lenders are reassuring as some banks are dragging their feet on credit approval review cases. “The most extreme case is nine months, without a reply to the customer,” he added. The consensus from the inaugural meeting ensures there will be a quick response to loan applications, so that they can make alternative financial arrangements in case of rejection by lenders. “Overall, the new task force is helpful in improving communications between banks and their SME clients”, he added. In the post-meeting statement on Thursday, the HKMA said the lenders agreed to set aside sufficient resources to speed up the process of handling customers’ loan requests. “The banks will communicate with the customers in an accommodative manner,” the HKMA added. Other lenders at the meeting included Hang Seng Bank, Bank of East Asia, Bank of Communications (Hong Kong), China Citic International, China Construction Bank (Asia), Citibank, Dah Sing Bank, DBS Bank (Hong Kong), ICBC Asia, OCBC Bank (Hong Kong), and virtual lender PAO Bank. https://www.scmp.com/business/article/3277381/hsbc-13-other-lenders-pledge-support-hong-kong-smes-amid-financing-struggles (ICE HONG KONG)

Fonte notizia: South China Morning Post