Major lenders in Hong Kong have agreed to adopt a series of measures to support local SMEs, following a meeting with the central bank.
The Hong Kong Monetary Authority (HKMA) held the first meeting of the Banking Sector SME Lending Coordination Mechanism with nine major banks.
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Representatives of the Hong Kong Mortgage (HKMC) and the Hong Kong Association of Banks (HKAB) also participated in the meeting.
In the meeting, HKMA reduced the countercyclical capital buffer (CCyB) ratio from 2.5% to 2%. The banks agreed to utilise the released buffer to support SMEs.
The banks also agreed to consider extending or rescheduling repayment period for SMEs facing financial difficulties.
Additionally, they will also explore additional avenues to ease financial burden of SMEs and bolster internal communication with these businesses to help them better understand bank policies.
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By GlobalDataIn the meeting, the HKAB and the HKMC also decided to set up a mechanism to procure feedback from SMEs on existing support policies received by banks.
This feedback will be then conveyed to the government to carry out any necessary policy adjustments.
In a statement, HKMA said: “The HKMA, together with the banking sector, will continue to maintain close dialogue with the commercial sector with a view to providing appropriate support to SMEs and helping them tide over the current difficulties.”
It may be noted that these measures are undertaken against the backdrop of ongoing political protests in Hong Kong.
