26 November 2004

Dear Sir / Madam,

Paragraph 5.5.2(i) of SPM IC-7 as currently drafted does not allow AIs to access the CCRA database in the course of considering a grant, review or renewal of a credit to an SME if that credit does not fall within the definition of "commercial credit".

Having discussed with the industry Working Party on CCRA, the HKMA believes that the existing wording of paragraph 5.5.2(i) can be improved to enable AIs to make fuller use of the CCRA database. Accordingly, the paragraph has been revised such that AIs are permitted to access the CCRA database in the course of considering a grant, review or renewal of any credit to an SME.

The revised SPM attached is issued by notice in the Gazette today. On-line access to the module is available under the icon of "Supervisory Policy Manual" in the HKMA's public (http://www.info.gov.hk/hkma) and private websites.

Should you have any questions relating to the module, please contact
Mr Alfred Wong at 2878-1292 or Miss Ivy Wong at 2878-1599.

Yours sincerely,

(Raymond Chan)
Acting Executive Director (Banking Development)