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
EBA Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models
The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.
EP Reaches Agreement on Corporate Sustainability Reporting Directive
The European Council and the European Parliament (EP) reached a provisional political agreement on the Corporate Sustainability Reporting Directive (CSRD).
PRA Consults on Model Risk Management Principles for Banks
The Prudential Regulation Authority (PRA) launched a consultation (CP6/22) that sets out proposal for a new Supervisory Statement on expectations for management of model risk by banks.
EC Regulation Amends Standards for Calculating Credit Risk Adjustments
The European Commission (EC) published the Delegated Regulation 2022/954, which amends regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.
BIS Hub Updates Work Program for 2022, Announces New Projects
The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.
EIOPA Issues Cyber Underwriting Proposal, Statement on Open Insurance
The European Insurance and Occupational Pensions Authority (EIOPA) published two consultation papers—one on the supervisory statement on exclusions related to systemic events and the other on the supervisory statement on the management of non-affirmative cyber exposures.
US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule
Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)
EIOPA Consults on Review of Securitization Framework in Solvency II
The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.
BIS Bulletins Discuss DeFi Lending and Aspects of Crypto-Assets
The Bank for International Settlements (BIS) published bulletins on lending in decentralized finance (DeFi) system, on blockchain scalability and fragmentation of crypto, and on extractable value and market manipulation in crypto and decentralized finance.
UK Authorities Issue Regulatory and Reporting Updates for Banks
The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.