Survey on Small and Medium-Sized Enterprises (SMEs)’ Credit Conditions for First Quarter 2024

The Hong Kong Monetary Authority (HKMA) has published the results of the Survey on Small and Medium-Sized Enterprises (SMEs) Credit Conditions for the first quarter of 2024. The survey indicates that SMEs’ perception of banks’ credit approval stance has improved, with 71% of respondents perceiving a “similar” or “easier” credit approval stance compared to six months ago. This is an increase from the previous quarter. Additionally, among respondents with existing credit lines, a smaller percentage (12%) reported a “tighter” stance from banks, indicating potential measures such as reducing credit lines or raising interest rates. The survey also showed that 86% of SMEs’ new credit applications were fully or partially successful during the first quarter. The survey, conducted by the Hong Kong Productivity Council (HKPC) on behalf of the HKMA, aims to monitor SMEs’ access to bank credit. While the results indicate positive trends in SMEs’ credit conditions, it is important to interpret them with caution due to potential fluctuations and the limited sample sizes of SMEs with existing credit lines and new credit applications. The survey results provide valuable insights into the credit landscape for SMEs in Hong Kong and help assess their access to bank credit from a demand-side perspective. Resources: https://www.hkma.gov.hk/eng/news-and-media/press-releases/2024/05/20240506-3/