Hong Kong: lending & credit regulation

Who regulates

• Hong Kong Monetary Authority

  Primary supervisor of Authorized Institutions and lender prudential oversight

  ^{[1][2][3][4][5][6][7][8][9][10][11][12][13][14][15][16][17][18][19][20][21][22][23][24][25][26][27][28][29][30][31][32][33][34][35][36][37][38][39][40][41][42][43][44][45][46][47][48][49]}

Core laws & rules

• Banking Ordinance (1989 (as amended))

  The primary legislation under which the HKMA supervises Authorized Institutions, including requirements for capital adequacy, large exposures, and lending practices.

  ^[23][47][48]

• Banking (Capital) Rules (2023 (Amendment))

  Implements Basel III standards, including revised credit risk frameworks (STC and IRB approaches) and counterparty credit risk management.

  ^[9][10][11]

• Banking (Exposure Limits) Rules (2019)

  Regulates large exposures of Authorized Institutions to single counterparties and linked groups.

  ^[47][48][49]

Licensing & registration

• Authorized Institution

  Entities must be licensed as Authorized Institutions (Banks, Restricted License Banks, or Deposit-taking Companies) to conduct deposit-taking and lending business regulated by the HKMA.

  ^[23][47]

• Non-Bank Consumer Credit / VASP Lending

  No specific licensing regime for non-bank consumer credit lenders or VASPs is established in the provided documents. General knowledge suggests these may be unregulated or subject to different frameworks not covered here.

  Low confidence — verify with the regulator before relying on this.

Restrictions & warnings

• Macroprudential measures cap Loan-to-Value (LTV) ratios at 70% for most properties and Debt Servicing Ratios (DSR) at 50%. Interest rate stress testing is required at 200 basis points.

  ^[15]

• Banks must provide a 7-day cooling-off period for unsecured consumer credit products, allowing fee-free repayment.

  ^[14]

• Enhanced disclosure and consumer protection standards apply to digital platforms for unsecured loan and credit card applications.

  ^[32]

• Authorized Institutions must participate in the Multiple Credit Reference Agencies (CRA) Model for sharing consumer and commercial credit data.

  ^[30]

Direction of travel

• The HKMA is advancing cross-boundary credit referencing pilots with the Mainland to facilitate secure data transfer for banking activities.

  ^[1][18]

• Regulatory treatments for personal loan guarantee schemes are being streamlined, and the HKMA is encouraging the use of Regtech for credit risk management.

  ^[33]

Sources

1. Cross-boundary Credit Referencing · 2025-10-10
2. Supplementary Guidance on the Revised Credit Risk Framework Chapter IV IRB Approach · 2025-07-21
3. Chapter IV of Supplementary Guidance on the Revised Credit Risk Framework · 2025-07-21
4. Supervisory Policy Manual Module CA-G-4: Validating Risk Rating Systems under the IRB Approach · 2025-07-18
5. Validating Risk Rating Systems under the IRB Approach · 2025-07-18
6. Revised Supervisory Policy Manual Module CR-G-7 on Collateral and Guarantees · 2025-04-11
7. Supervisory Policy Manual Module CR-G-7: Collateral and Guarantees · 2025-04-11
8. Guidelines for Counterparty Credit Risk Management · 2024-12-13
9. Banking (Capital)(Amendment) Rules 2023 - Supplementary Guidance on the Revised Credit Risk Framework Chapter III - STC approach · 2024-12-13
10. Banking (Capital)(Amendment) Rules 2023 - Supplementary Guidance on the Revised Credit Risk Framework · 2024-12-13
11. Supplementary Guidance on the Revised Credit Risk Framework: Counterparty Credit Risk · 2024-12-13
12. Supplementary Guidance on the Revised Credit Risk Framework: ECAI Ratings · 2024-12-13
13. Prudential Measures for Property Mortgage Loans · 2024-12-04
14. Cooling-off Period for Unsecured Consumer Credit Products · 2024-11-08
15. Prudential Measures for Property Mortgage Loans · 2024-10-16
16. Residential mortgage lending under the Mortgage Insurance Programme · 2024-08-02
17. Standard Contract for Cross-boundary Flow of Personal Information involving Transfer of Credit Data through Credit Reference Agencies · 2024-06-28
18. Pilots on Cross-boundary Credit Referencing · 2024-06-28
19. Refinements to property mortgage lending requirements · 2024-06-14
20. Prudential Measures for Property Mortgage Loans and Other Related Supervisory Requirements · 2024-02-28
21. Circular on Lending Practices · 2023-12-20
22. Supervisory Policy Manual CR-S-4: New Share Subscription and Share Margin Financing · 2023-11-17
23. Supervisory Policy Manual SPM CR-S-4 New Share Subscription and Share Margin Financing · 2023-11-17
24. Dedicated 100% Loan Guarantee Scheme for Battery Electric Taxis · 2023-08-29
25. Orderly exit from the Pre-approved Principal Payment Holiday Scheme · 2023-07-11
26. Prudential Measures for Property Mortgage Loans · 2023-07-07
27. Major Enhancements on Protection of Payment Card Customers · 2023-06-20
28. Major Enhancements on Protection of Payment Card Customers · 2023-06-20
29. Regulatory Treatments for the 100% Personal Loan Guarantee Scheme · 2023-04-25
30. Supervisory Policy Manual IC-7: The Sharing and Use of Commercial Credit Data through a Commercial Credit Reference Agency · 2022-12-30
31. Feedback from Recent Review on Consumer Protection in respect of Digital Platforms for the Application of Credit Products · 2022-12-20
32. Key Observations and Sound Practices on Consumer Protection in respect of Digital Platforms for the Application of Credit Products · 2022-12-20
33. Streamlined Launch Arrangements for New Personal-Lending Portfolio Products · 2022-10-27
34. Further extension of the Pre-approved Principal Payment Holiday Scheme · 2022-10-20
35. Revisions to Banking Returns and Surveys: MA(BS)20 Completion Instructions · 2022-10-17
36. Revisions to banking returns and surveys · 2022-10-17
37. Further extension of the Pre-approved Principal Payment Holiday Scheme · 2022-09-16
38. Expansion of Pilot Payment Arrangements for Property Transactions · 2022-07-20
39. 100% Personal Loan Guarantee Scheme · 2022-05-03
40. Further extension of the Pre-approved Principal Payment Holiday Scheme · 2022-02-23
41. Payment Arrangements for Property Transactions (PAPT) · 2021-12-29
42. Further extension of the Pre-approved Principal Payment Holiday Scheme · 2021-03-04
43. Capital treatment of securitisations of non-performing loans · 2020-11-30
44. Annex 4: Completion Instructions for Quarterly Analysis of Loans and Advances and Provisions · 2020-11-16
45. Revised Completion Instructions for Return of Mainland Activities (MA(BS)20) · 2019-10-25
46. Revised Completion Instructions for Return of Loans and Advances and Provisions (MA(BS)2A) and Return of Mainland Activities (MA(BS)20) · 2019-10-25
47. Return of Large Exposures (Form MA(BS)28) · 2019-09-06
48. Completion Instructions for Return of Large Exposures (Form MA(BS)28) · 2019-09-06
49. Code of Practice – Banking (Exposure Limits) Code · 2019-06-21