Sponsors

Link Details

FS welcomes HKMA move


Financial Secretary Paul Chan today welcomed the reduction of the countercyclical capital buffer (CCyB) for Hong Kong to 1% by the Monetary Authority.

 

Noting that small and medium-sized enterprises (SMEs) have imminent financing needs amid the impact of the epidemic outbreak and the pressure of the global economic downturn, the Financial Secretary's Office said lowering the CCyB will release some $500 billion in capital to provide banks with a larger buffer to support the local economy as well as hard-hit sectors and individuals.

 

"I call on the banking sector to provide full support to SME borrowers while complying with their own credit policies and risk management principles. This includes handling enterprises' loan applications with a supportive, accommodating and flexible attitude at full speed, and providing the option of loan restructuring for those in need, so as to assist them in overcoming the challenges," Mr Chan said.

 

He added among the one-off measures that total over $120 billion in the Budget is a concessionary low-interest loan with a 100% government guarantee to address the financing needs of SMEs facing difficulties, and that the Mortgage Corporation has started discussion with banks and the relevant preparatory work.

 

The finance chief said the scheme will be discussed by the Legislative Council's Commerce & Industry Panel tomorrow before submission to the Finance Committee for approval, noting that it will be formally launched in April subject to approval within this month.

 

?The Monetary Authority will continue to co-ordinate the close liaison between the banking sector and the trade, with a view to providing suitable assistance to SMEs."

 

Saying that the global financial market has been tumbling due to worldwide uncertainty, Mr Chan noted financial regulators will continue to monitor the market closely through a cross-market co-ordinated approach and ensure the normal and orderly operation of the currency, stock, futures and derivatives markets.

 

Where necessary, additional enhancement measures will be implemented to safeguard the financial stability of Hong Kong, he added.

                                                                                                                                      

Mr Chan also appealed to investors to manage their risks properly and make careful investment decisions.


Read Full Article