The newly formed joint taskforce on SME Lending held its first meeting, focusing on addressing common issues faced by SMEs in accessing and maintaining bank financing.

Co-chaired by Arthur Yuen, Deputy Chief Executive of the Hong Kong Monetary Authority (HKMA), and Luanne Lim, Chairperson of the Hong Kong Association of Banks (HKAB), the meeting brought together representatives from the HKMA, HKAB, and 14 banks that are actively involved in SME lending to discuss practical solutions.

A key takeaway from the meeting was the participating banks’ commitment to maintaining their current risk appetite for SME financing and ensuring the ongoing implementation of existing SME support measures.

Additionally, the taskforce underscored the importance of fair treatment and accommodation for customers seeking financing, highlighting good practices such as increased transparency in credit approval processes and improved customer service.

The taskforce also acknowledged the need for banks to uphold effective risk management to safeguard depositor interests.

In cases of prolonged non-repayment, banks will take necessary actions while ensuring these are carried out and communicated to customers in an understanding and supportive manner.

In a bid to further support the growth and transformation of SMEs, the HKMA and the banking industry will continue to collaborate with the commercial sector, organising seminars and activities in the coming months to help SMEs leverage data and technology to boost their productivity.

The taskforce was established in August to enhance support for SMEs seeking bank financing at both individual and industry levels.

It has set up a mechanism to review individual cases of SMEs facing difficulties in obtaining or maintaining bank financing, with the HKMA referring cases to the relevant banks for resolution.

If common issues are identified among the cases, the taskforce will develop appropriate solutions for adoption across the banking industry.