HKMA Extends Guarantee Scheme for SME Financing
The Hong Kong Monetary Authority (HKMA) issued an update on the small and medium-size enterprise (SME) Financing Guarantee Scheme and announced names of 19 eligible banks in Hong Kong that can launch Cross-boundary Wealth Management Connect services. These banks, together with their respective Mainland partner banks whose eligibility for providing pilot Cross-boundary Wealth Management Connect services have been confirmed by the relevant Mainland regulatory authorities, can start providing Cross-boundary Wealth Management Connect services from October 19, 2021.
As set out in the “Implementation Arrangements for the Cross-boundary Wealth Management Connect Pilot Scheme in the Guangdong-Hong Kong-Macao Greater Bay Area,” promulgated by HKMA on September 10, 2021, banks in Hong Kong that intend to embark on the Cross-boundary Wealth Management Connect activities should put in place systems, internal control measures, and complete relevant systems testing and submit a self-assessment to HKMA prior to the launch of such activities in accordance with the requirements in the Implementation Arrangements. The Cross-boundary Wealth Management Connect consists of the Southbound Scheme and the Northbound Scheme. The Southbound Scheme refers to eligible residents in the Mainland Greater Bay Area cities investing in wealth management products distributed by banks in Hong Kong and Macao via designated channels. The Northbound Scheme refers to eligible residents in Hong Kong and Macao investing in wealth management products distributed by the Mainland banks via designated channels. Banks intending to participate in the Northbound Scheme should notify and submit assessments of their business readiness to the relevant supervisory authorities in accordance with the principle of territorial administration. The list of eligible Hong Kong banks and their Mainland partner banks that can launch the Northbound Scheme services is as follows:
Hong Kong Bank |
Mainland Partner Bank |
---|---|
AGRICULTURAL BANK OF CHINA LIMITED |
|
BANK OF CHINA (HONG KONG) LIMITED |
BANK OF CHINA LIMITED |
BANK OF COMMUNICATIONS (HONG KONG) LIMITED |
BANK OF COMMUNICATIONS CO., LTD. |
CHINA CITIC BANK INTERNATIONAL LIMITED |
CHINA CITIC BANK CORPORATION LIMITED |
CHINA CONSTRUCTION BANK (ASIA) CORPORATION LIMITED |
CHINA CONSTRUCTION BANK CORPORATION |
CHINA MINSHENG BANKING CORP., LTD. |
CHINA MINSHENG BANKING CORP., LTD. |
CITIBANK (HONG KONG) LIMITED |
CHINA GUANGFA BANK CO., LTD. |
CMB WING LUNG BANK LIMITED |
CHINA MERCHANTS BANK CO., LTD. |
HANG SENG BANK, LIMITED |
HANG SENG BANK (CHINA) LIMITED |
HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED (THE) |
HSBC BANK (CHINA) COMPANY LIMITED |
INDUSTRIAL AND COMMERCIAL BANK OF CHINA (ASIA) LIMITED |
INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED |
INDUSTRIAL BANK CO., LTD. |
INDUSTRIAL BANK CO., LTD. |
NANYANG COMMERCIAL BANK, LIMITED |
NANYANG COMMERCIAL BANK (CHINA), LIMITED |
OCBC WING HANG BANK LIMITED |
PING AN BANK CO., LTD |
SHANGHAI PUDONG DEVELOPMENT BANK CO., LTD. |
SHANGHAI PUDONG DEVELOPMENT BANK CO., LTD. |
STANDARD CHARTERED BANK (HONG KONG) LIMITED |
STANDARD CHARTERED BANK (CHINA) LTD |
The list of eligible Hong Kong banks and their Mainland partner banks that can launch the Southbound Scheme services is as follows:
Hong Kong Bank |
Mainland Partner Bank |
---|---|
AGRICULTURAL BANK OF CHINA LIMITED |
AGRICULTURAL BANK OF CHINA LIMITED |
BANK OF CHINA (HONG KONG) LIMITED |
BANK OF CHINA LIMITED |
BANK OF COMMUNICATIONS (HONG KONG) LIMITED |
BANK OF COMMUNICATIONS CO., LTD. |
BANK OF EAST ASIA, LIMITED (THE) |
THE BANK OF EAST ASIA (CHINA) LIMITED |
CHINA CITIC BANK INTERNATIONAL LIMITED |
CHINA CITIC BANK CORPORATION LIMITED |
CHINA CONSTRUCTION BANK (ASIA) CORPORATION LIMITED |
CHINA CONSTRUCTION BANK CORPORATION |
CHINA MINSHENG BANKING CORP., LTD. |
CHINA MINSHENG BANKING CORP., LTD. |
CITIBANK (HONG KONG) LIMITED |
CHINA GUANGFA BANK CO., LTD. |
CMB WING LUNG BANK LIMITED |
CHINA MERCHANTS BANK CO., LTD. |
DAH SING BANK, LIMITED |
DAH SING BANK (CHINA) LIMITED |
DBS BANK (HONG KONG) LIMITED |
DBS BANK (CHINA) LIMITED POSTAL SAVINGS BANK OF CHINA CO., LTD |
HANG SENG BANK, LIMITED |
HANG SENG BANK (CHINA) LIMITED |
HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED (THE) |
HSBC BANK (CHINA) COMPANY LIMITED |
INDUSTRIAL AND COMMERCIAL BANK OF CHINA (ASIA) LIMITED |
INDUSTRIAL AND COMMERCIAL BANK OF CHINA LIMITED |
INDUSTRIAL BANK CO., LTD. |
INDUSTRIAL BANK CO., LTD. |
NANYANG COMMERCIAL BANK, LIMITED |
NANYANG COMMERCIAL BANK (CHINA), LIMITED |
OCBC WING HANG BANK LIMITED |
PING AN BANK CO., LTD |
SHANGHAI PUDONG DEVELOPMENT BANK CO., LTD. |
SHANGHAI PUDONG DEVELOPMENT BANK CO., LTD. |
STANDARD CHARTERED BANK (HONG KONG) LIMITED |
STANDARD CHARTERED BANK (CHINA) LTD |
In another announcement, HKMC Insurance Limited (HKMCI) noted that the extension of the maximum duration of principal moratorium under the SME Financing Guarantee Scheme to 24 months will take effect from October 06, 2021. This enhanced support measure is applicable to the 80% Guarantee Product, the 90% Guarantee Product, and the Special 100% Loan Guarantee under the SME Financing Guarantee Scheme. Enterprises may approach relevant lending institutions to apply for principal moratorium or extend the principal moratorium period. The SME Financing Guarantee Scheme was launched on January 01, 2011 by The Hong Kong Mortgage Corporation Limited. The Scheme is aimed at helping local small and medium-size enterprises and non-listed enterprises to obtain financing from participating lenders for meeting their business needs so as to enhance their productivity and competitiveness in the rapidly changing business environment. Under the Scheme, the HKMCI may provide guarantee coverage of 50%, 60% or 70% to the credit facilities of eligible Enterprises approved by the lenders.
Keywords: Asia Pacific, Hong Kong, Banking, Wealth Management Connect, Northbound Scheme, Southbound Scheme, SME Financing, Credit Risk, Loan Guarantee Scheme, SFGS, HKMA
Previous Article
FSI Reports Findings of Crisis Simulation Exercise in Latin AmericaRelated Articles
EC Consults on PSD2 and Open Finance; EU Reaches Agreement on DORA
The European Commission (EC) published a public consultation on the review of revised payment services directive (PSD2) and open finance.
EC Mandates ESAs to Propose Amendments to SFDR Technical Standards
The European Commission (EC) has issued two letters mandating the European Supervisory Authorities (ESAs) to jointly propose amendments to the regulatory technical standards under Sustainable Finance Disclosure Regulation or SFDR.
EBA Examines Supervisory Practices, Issues Deposits Reporting Template
The European Banking Authority (EBA) published its annual report on convergence of supervisory practices for 2021. Additionally, following a request from the European Commission (EC),
US Agency Publications Address Basel, Reporting, and CECL Developments
The Farm Credit Administration published, in the Federal Register, the final rule on implementation of the Current Expected Credit Losses (CECL) methodology for allowances
SEC Extends Comment Period on Climate Risk Disclosures
The U.S. Securities and Exchange Commission (SEC) looks set to intensify focus on crypto-assets and cyber risk and extended the comment period on the proposed rules to enhance and standardize climate-related disclosures for investors.
APRA Reduces Committed Liquidity Facility, Issues Other Updates
The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility and issued an update on the operational preparedness for zero and negative market interest rates.
CMF Consults on Basel Rules, Presents Roadmap to Address Climate Risks
The Commission for the Financial Market (CMF) in Chile published capital adequacy ratios (as of February 2022, January 2022, and December 2021) for 17 banks and for the banking system.
PRA Issues Statement on NPEs and Policy on Trading Activity Wind-Down
The Prudential Regulation Authority (PRA) issued a statement on the European Banking Authority (EBA) guidelines on management of non-performing exposures (NPEs) and forborne exposures.
EBA Updates Standards for 2023 Benchmarking of Internal Approaches
The European Banking Authority (EBA) updated the implementing technical standards that specify the data collection for the 2023 supervisory benchmarking exercise in relation to the internal approaches used in market risk, credit risk, and IFRS 9 accounting.
EIOPA Responds to Stakeholder Views on Blockchain in Insurance
The European Insurance and Occupational Pensions Authority (EIOPA) published a feedback statement on the responses received to the consultation on blockchain and smart contracts in insurance.