HK launches commercial credit reference agency

Hong Kong's first Commercial Credit Reference Agency was officially launched today (October 25).

The agency is to be operated by Dun & Bradstreet (HK) Ltd, the service provider appointed by the Hong Kong Association of Banks (HKAB) and the Hong Kong Association of Restricted Licence Banks and Deposit-taking Companies (DTCA).

It will collate information about the indebtedness and credit history of small and medium-sized enterprises and make the information available to members of the HKAB and the DTCA for the purpose of granting, reviewing or renewing an SME's credit.

Acting chairman of the HKAB Julian Fong said that with increased information about the creditworthiness of borrowers, SMEs with a good credit history would be able to obtain loans more quickly and at more competitive prices.

"At the same time, lending institutions can expedite the loan approval process and strengthen their credit risk management," Mr Fong said.

Mrs Lina Lee Executive Committee member of the DTCA said many members of the association were active lenders to SMEs.

"The services of the CCRA will undoubtedly enhance the credit risk assessment of lending institutions and enable them to provide better lending terms and rates to SMEs," she said.

Executive Director (Banking Development) of the Hong Kong Monetary Authority Arthur Yuen said the agency was a common feature in leading financial centres.

"The setting up of a CCRA in Hong Kong is an essential element to enhance the safety and soundness of the financial system and is widely supported by both the financial industry and the business sector," he said.

Coinciding with today's launch a revised leaflet was issued on the Commercial Credit Reference Agency to provide more up-to-date information to the public about the scheme.

Ends/Tuesday, October 26, 2004