Regulatory Alerts2017-05-19
Added · Updated
Prudential Measures for Property Mortgage Loans
The Hong Kong Monetary Authority issued new prudential measures on 19 May 2017 to strengthen risk management and safeguard banking stability amid rising property prices and increased credit risks. The regulations require authorized institutions to raise the risk-weight floor to 25% for new residential mortgages under the Internal Ratings-Based Approach and impose stricter Loan-to-Value and Debt Servicing Ratio limits for borrowers with multiple mortgages or foreign income. These measures take immediate effect, with a grandfathering clause allowing existing provisional agreements to be assessed under previous criteria.