Regulatory Alerts2023-12-20
Added · Updated
Circular on Lending Practices
The Hong Kong Monetary Authority issued this circular to clarify supervisory expectations regarding lending practices during economic downturns. It mandates that banks must not demand early mortgage repayments solely due to declining collateral values and must consider broader financial factors rather than relying exclusively on collateral for credit line adjustments. Additionally, banks are required to handle corporate difficulties sympathetically by avoiding abrupt credit tightening and providing sufficient notice for alternative financing arrangements.
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