Interbank Debt Relief Plan

55th Floor, Two International Finance Centre, 香 港 中 環 金 融 街 8 號 國 際 金 融 中 心 2 期 55 樓 8 Finance Street, Central, Hong Kong 網 址：www.hkma.gov.hk Website: www.hkma.gov.hk Our Ref: B1/15C B9/67C B9/32C 21 November 2025 The Chief Executive All Authorized Institutions Dear Sir / Madam, Interbank Debt Relief Plan This circular sets out the enhancements on handling personal customers who have genuine difficulty in repaying consumer loans to multiple financial institutions. The Hong Kong Approach to Consumer Debt Difficulties (“Approach”) was issued by the Hong Kong Association of Banks (“HKAB”) in conjunction with the DTC Association and the HKSAR Licensed Money Lenders Association (collectively the “Industry Associations”), and is endorsed by and has the strong support of the Hong Kong Monetary Authority (“HKMA”). The Approach sets out how members of the Industry Associations are expected to deal with personal customers who have genuine difficulty in repaying consumer loans granted by financial institutions. As
part of the Approach, the Industry Associations make available a framework of
Interbank Debt Relief Plan (“IDRP”) and adopt the Agreement for Debt Relief Plans (“IDRP Agreement”), which guides financial institutions in dealing with customers who experience difficulty in repaying debts to multiple financial institutions. In 2025, HKAB has taken the lead and conducted a comprehensive review on the Approach and the framework of IDRP with a view to improving the effectiveness and efficiency of the IDRP. With the support from the HKMA, HKAB has invited more member banks and other non-bank financial institutions to participate in the framework of IDRP (collectively the “Creditor Participants”) to offer this collective solution to personal customers in need. It is encouraging that all retail banks (including digital banks) and major money lenders that offer consumer credit

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  products have now participated in the framework of IDRP. The IDRP process has also been digitalised where Creditor Participants can accept electronic form and electronic signature on the required documents through digital channels. The HKMA strongly encourages all relevant Authorized Institutions (“AIs”) to fully adopt the digitalised process in case any of them has not already done so. HKAB has today issued a circular on the further enhancements made to the Approach and the framework of IDRP, which are endorsed by and has the strong support of the HKMA. Please refer to HKAB’s circular for details. Specifically, we would like to draw your attention to the HKMA’s expectations in relation to the following areas:

1. Revised Approach and IDRP Agreement
   HKAB has reviewed and updated the Approach and the IDRP Agreement in light of the evolving legal, regulatory and market conditions. As stated in the Supervisory Policy Manual IC-6 “The Sharing and Use of Consumer Credit Data through Credit Reference Agencies” (“SPM IC-6”), the HKMA expects AIs to follow the guidelines set out in the Approach. When a customer has incurred a level of indebtedness that may be unmanageable and the customer might have genuine difficulty in repaying the loans, AIs should consider such cases sympathetically and discuss with the customer to work out a solution that is mutually beneficial for both the customer and the AI concerned. In cases where multiple financial institutions are involved, the customer should be made aware of the possibility of solving the problem through an IDRP. AIs should not hastily demand immediate repayment of loans or reduce credit lines or actively recommend transfer of the balance. Instead, AIs should follow the framework and procedures which are laid down in the IDRP Agreement. In this connection, the HKMA expects all retail banks (including digital banks) and their subsidiaries that offer consumer credit products to participate in the framework of IDRP. The updated list of IDRP Creditor Participants with contact information is now maintained in the Member Area of HKAB’s website to facilitate IDRP negotiation.

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2. Lead Participants
   In an IDRP negotiation, the Lead Participant negotiates and agrees the terms with the debtor on behalf of other Creditor Participants so that the debtor does not have to deal with multiple creditors. The appointment of a Lead Participant is therefore crucial and a prerequisite in any IDRP negotiation. The HKMA strongly encourages AIs active in consumer lending to serve the role of Lead Participant, and is glad to note that recently more AIs have agreed to take up such role. The list of Lead Participants is now made available in the Member Area of HKAB’s website for the reference by the Creditor Participants.
3. Best practices in handling IDRP cases
   In most cases, time is of essence for debtors facing financial difficulty, and a debt restructuring plan may fall through if the negotiation takes extended time or imposes onerous documentation requirements. HKAB has issued a set of best practices on the handling of IDRP cases to facilitate smoother and more efficient negotiation and approval process. While it is acknowledged that financial institutions have their own internal credit policies and procedures, the HKMA strongly encourages AIs to adopt the best practices as far as possible. Where necessary, AIs should review their internal policies and procedures with a view to aligning them with the best practices. AIs are reminded to maintain sufficient resources, and provide staff training and guidance to ensure IDRP cases are handled in a proper manner.
4. Consumer awareness of IDRP
   As stated in SPM IC-6 and the Approach, customers facing genuine difficulty in repaying debts owed to multiple financial institutions should be made aware of the possibility of solving the problem through an IDRP. Customers interested in an IDRP should be provided with a consumer guide and other relevant information as appropriate. The HKMA also encourages AIs to make available guidance to customers in an easily accessible manner (e.g. on the AIs’ website) on what to do when they are facing financial difficulty consistent with the principles set out in the Approach, including the possibility of using an IDRP.

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  This circular supersedes the HKMA’s circular dated 31 October 2002 on the Approach. If you have any questions regarding this circular, please feel free to contact Ms Yoyo Wong at 2878 1352 or Mr Michael Leung at 2878 1186. Yours faithfully, Alan Au Executive Director (Banking Conduct) Encl. c.c. The Chairman, Hong Kong Association of Banks The Chairman, DTC Association Secretary for Financial Services and the Treasury (Attn: Mr Timothy Wong and Mr Kelvin Lo)