Regulatory Alerts2023-04-25
Added · Updated
Regulatory Treatments for the 100% Personal Loan Guarantee Scheme
The Hong Kong Monetary Authority issued this letter to define the regulatory treatments for authorized institutions participating in the 100% Personal Loan Guarantee Scheme administered by the HKMC. The document specifies that exposures to the HKMC are covered by the Government's commitment, allowing for favorable risk-weighting under capital rules and specific reporting classifications in banking returns. Additionally, the HKMA exempts these loans from standard credit assessment requirements and instructs institutions to avoid tightening existing credit for applicants due to the minimal credit risk involved.