November 24, 2017

HKMA published the revised Supervisory Policy Manual (SPM) Module IC-7 on sharing and use of commercial credit data through a commercial credit reference agency (CCRA). CCRA is an organization that gathers and collates information about the indebtedness and credit history of commercial enterprises and makes such information available to lending institutions.

Module IC-7 specifies the minimum standards that authorized institutions should observe in relation to the sharing and use of commercial credit data through a CCRA. Revisions to the module were made in the light of the latest industry initiative to expand the coverage of the commercial credit database in Hong Kong on December 01, 2017. Module IC-7 is applicable to authorized institutions that are involved in the provision of credit to commercial enterprises, which fall within the definitions of small and medium-size enterprise (SME) Limited Companies and Unlimited Companies. HKMA believes that the establishment of a full-fledged CCRA will bring significant benefits to Hong Kong, as CCRA will:

  • Provide authorized institutions with a fuller picture of the credit worthiness of their corporate customers, thus helping to strengthen their credit risk management. This will be conducive to HKMA’s efforts in maintaining the safety and soundness of the banking system.
  • Improve the credit transparency of the corporate sector, thus making it easier and quicker for borrowers to seek bank finance.

Keywords: Asia Pacific, Banking, Commercial Credit Data, CCRA, Credit Risk, HKMA

Related Articles
News

IMF Releases Report on 2019 Article IV Consultation with United States

IMF published its staff report in the context of the 2019 Article IV consultation with the United States.

June 24, 2019 WebPage Regulatory News
News

BIS Report Discusses Regulatory Issues Related to Big Techs in Finance

BIS has pre-released a chapter of the BIS Annual Economic Report; this chapter focuses on the risks and opportunities presented by large technology firms in the financial services sector.

June 23, 2019 WebPage Regulatory News
News

IOSCO Report Examines Liquidity in Corporate Bond Markets

IOSCO published a report that examines the factors affecting liquidity, under stressed conditions, in the secondary corporate bond markets.

June 21, 2019 WebPage Regulatory News
News

FED Publishes Results of the 2019 Stress Tests for Banks

FED published a report presenting results of the Dodd-Frank Act Stress Test (DFAST) exercise for 2019.

June 21, 2019 WebPage Regulatory News
News

BCBS Report Examines Global Pillar 2 Supervisory Review Practices

BCBS published a report that examines the Pillar 2 supervisory review practices and approaches in Basel member jurisdictions.

June 21, 2019 WebPage Regulatory News
News

IASB Publishes Work Plan and Meeting Updates for June 2019

IASB published an updated work plan and a summary of its June meeting, which presents preliminary decisions of the Board.

June 21, 2019 WebPage Regulatory News
News

HKMA Publishes Banking Exposure Limits Code Under Banking Ordinance

HKMA issued a circular to all authorized institutions informing that the Banking (Exposure Limits) Code has been published in the Gazette on June 21, 2019.

June 21, 2019 WebPage Regulatory News
News

OSFI Proposes Guideline on Internal Model Oversight for Insurers

OSFI proposed the draft guideline E-25 on the internal model oversight framework for federally regulated property and casualty (P&C) insurance companies.

June 21, 2019 WebPage Regulatory News
News

EBA Single Rulebook Q&A: Third Update for June 2019

Under the Single Rulebook question and answer (Q&A) updates for this week, EBA published one answer regarding the calculation of institution-specific countercyclical capital buffer rates.

June 21, 2019 WebPage Regulatory News
News

SEC Finalizes Capital and Margin Requirements for Security-Based Swaps

SEC adopted a package of rules and rule amendments to establish capital, margin, and segregation requirements for security-based swaps, under Title VII of the Dodd-Frank Act.

June 21, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 3304