Regulatory Alerts2019-08-29
Added · Updated
Guidelines on Credit Risk Management for Personal Lending Business
The Hong Kong Monetary Authority amended its guidelines on credit risk management for personal lending to allow authorized institutions greater flexibility in using financial technology-driven credit risk tools. The regulator removed the previous across-the-board limit of 10% of an institution's capital base, replacing it with a requirement for each institution to set its own portfolio limit commensurate with its specific risk appetite and management capability. Authorized institutions must also ensure responsible lending practices, implement adequate risk controls for new personal-lending portfolios, and conduct periodic post-implementation reviews.
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