HSBC and 13 Other Banks Pledge to Bolster Hong Kong SMEs Amid Financing Struggles: A Step to Revitalize the Economy

HSBC and 13 other banks have committed to assist Hong Kong's small and medium-sized enterprises (SMEs) during their financial difficulties. These fourteen banks, all involved in providing loans to the city's small businesses, have vowed to increase their loan offerings to help meet their financial requirements.

Fourteen commercial banks in Hong Kong have committed to continue supporting small businesses with financing, and to expedite their approval process. This decision came after the government intervened last month to address grievances about difficulties in obtaining funds.

Financial institutions such as HSBC, Standard Chartered, and the Bank of China (Hong Kong) have committed to maintaining their current risk tolerance levels in providing loans to small and medium-sized businesses (SMEs), along with their existing credit approval policies, as declared by an industry task force statement.

Additionally, they committed to respond to inquiries about credit approval reviews within a month, guarantee the successful execution of support measures for small and medium-sized enterprises, deal with customers in a just manner, and assign sufficient staff and resources to reevaluate problematic cases. They have also consented to approve valid mortgage loans within a fortnight.

The pledges came after the inaugural meeting of the SME Lending Taskforce, which was established last month to assist small and medium-sized enterprises (SMEs) in securing financing to sustain or grow their businesses during an economic downturn.

Arthur Yuen Kwok-hang, deputy CEO of the Hong Kong Monetary Authority (HKMA), and Luanne Lim, chairwoman of the Hong Kong Association of Banks (HKAB), are jointly leading the task force. The meeting was also graced by the presence of senior executives from banks who are prominent players in the SME market, as per the report.