Regulatory Alerts2021-04-20
Added · Updated
100% Personal Loan Guarantee Scheme Regulatory Treatments
The Hong Kong Monetary Authority issued this letter to define the regulatory treatments for authorized institutions participating in the 100% Personal Loan Guarantee Scheme administered by the HKMC. The document specifies that exposures to the HKMC are fully covered by the Government, allowing banks to apply favorable risk weights under capital rules and report receivables as sovereign or public sector exposures. Additionally, the HKMA exempts these loans from standard credit assessment requirements and prohibits credit actions that might tighten existing credit lines for applicants.