Regulatory Alerts2024-02-28
Added · Updated
Prudential Measures for Property Mortgage Loans and Other Related Supervisory Requirements
The Hong Kong Monetary Authority adjusted countercyclical macroprudential measures for property mortgage loans to ease lending constraints amid declining property prices and economic uncertainties. The regulator increased maximum loan-to-value ratios for self-occupied, non-self-use, and non-residential properties while suspending the interest rate stress testing requirement. Additionally, financing caps for property developers were raised to pre-2017 levels and capital set-aside requirements for high LTV exposures were lifted to support market stability.