The Hong Kong Monetary Authority, the Hong Kong Association of Banks (HKAB) and two other organizations have jointly set up an agency that will collate information on the indebtedness and credit history of small- and medium-size enterprises (SMEs), a statement said.
In a joint announcement, the four organizations said the information to be collated will be made available to members of the HKAB and the Deposit Taking Companies Association (DTCA) for the purpose of granting, reviewing or renewing credit to SMEs.
The Commercial Credit Reference Agency (CCRA) is to be operated by Dun & Bradstreet (HK) Ltd, one of the four partners, which also includes the DTCA.
DTCA executive committee member Lina Lee said the CCRA's services will "undoubtedly enhance the credit risk assessment of lending institutions and enable them to provide better lending terms and rates to SMEs."
Many members of the DTCA actively lend to SMEs.
