Regulatory Alerts2022-10-27
Added · Updated
Implementation Arrangements for Lowered Statutory Interest Rate Limits under the Money Lenders Ordinance
The Hong Kong Monetary Authority issued this circular to outline implementation arrangements for the Legislative Council's approval to lower statutory interest rate limits under the Money Lenders Ordinance. Authorized Institutions must adopt the revised limits of 48% for the interest rate cap and 36% for the extortionate rate effective 30 December 2022, aligning with the Code of Banking Practice. Regulators require institutions to proactively communicate these changes to customers, facilitate migration to compliant products, and ensure subsidiaries also adhere to these new standards.
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