HKMA granted a banking license to the Bank of Dongguan Co. Ltd, which is incorporated in the People’s Republic of China. With this, the number of licensed banks in Hong Kong is 162. In another development, HKMA announced that enhancements to the Special 100% Loan Guarantee of the SME Financing Guarantee Scheme will take effect from March 29, 2021, with an extension of the application period till December 31, 2021. HKMA had announced certain enhancements to the Loan Guarantee scheme in February 2021 as a result of the ongoing challenges posed by the COVID-19 pandemic.
To benefit from the enhancements to this Guarantee Scheme, eligible enterprises should have been operating for at least three months as at June 30, 2020 and should have suffered at least a 30% decline in sales turnover in any month since February 2020 compared with the monthly average of any quarter from early 2019 to mid-2020. The maximum amount of loan per enterprise will be raised from the total amount of employee wages and rents for 12 months to that for 18 months, or HKD 6 million (originally HKD 5 million), whichever is lower. Meanwhile, the maximum repayment period of the guaranteed loans will be increased from 5 years to 8 years and the principal moratorium arrangement will be extended from up to 12 months to up to 18 months.
Keywords: Asia Pacific, Hong Kong, Banking, Loan Guarantee, Credit Risk, Payment Deferrals, COVID-19, Bank of Dongguan, Bank Licenses, HKMA
Leading economist; commercial real estate; performance forecasting, econometric infrastructure; data modeling; credit risk modeling; portfolio assessment; custom commercial real estate analysis; thought leader.
APRA announced the standardization of quarterly reporting due dates for authorized deposit-taking institutions.
Bundesbank published a list of "EntryPoints" that are accepted in its reporting system; the list provides taxonomy version and name of the module against each EntryPoint.
The private sector working group of ECB on euro risk-free rates published the recommendations to address events that would trigger fallbacks in the Euro Interbank Offered Rate (EURIBOR)-related contracts, along with the €STR-based EURIBOR fallback rates (rates that could be used if a fallback is triggered).
EBA published the phase 1 of its reporting framework 3.1, with the technical package covering the new reporting requirements for investment firms (under the implementing technical standards on investment firms reporting).
Asia Pacific Australia Banking APS 111 Capital Adequacy Regulatory Capital Basel RBNZ APRA
ESMA published the final guidelines on outsourcing to cloud service providers.
EBA published annual data for two key concepts and indicators in the Deposit Guarantee Schemes (DGS) Directive—available financial means and covered deposits.
OSFI has set out the schedule for release of draft guidance on the management of technology risks by federally regulated financial institutions and private pension plans.
MAS updated rules for new housing loans by banks and finance companies.
HKMA published a statement on the 100% Personal Loan Guarantee Scheme and a guideline on the Green and Sustainable Finance Grant Scheme (GSF Grant Scheme) as announced in the 2021-22 Budget.