SMEs find loans harder to get

Malicious defaulters will not be let off the hook, says Howard Lee. SING TAO
Malicious defaulters will not be let off the hook, says Howard Lee. SING TAO

Thirty percent of small and medium-sized local firms found it "more difficult" to gain loans from banks in the fourth quarter of last year, six percentage points higher than the previous quarter, a survey by the Hong Kong Monetary Authority showed.

The survey on SMEs' credit conditions in the fourth quarter covers about 2,500 SMEs from different economic sectors.

The perception of a more difficult credit approval stance may not necessarily reflect actual difficulties faced by SMEs in obtaining bank credit but are affected by media, business conditions and opinions of relatives and friends, according to the HKMA.

However, among respondents with existing credit lines, 0 percent reported a "tighter" stance from banks, down further from 1 percent in the previous quarter.