Last year, the specific category loan ratio in Hong Kong rose to 2.01%. The Monetary Authority: Credit risk remains controllable

By the end of 2025, the specific classified loan ratio in the Hong Kong banking sector is expected to rise to 2.01%. The Vice President of the Monetary Authority, Yu Guoheng, stated that despite ongoing upward pressure, he believes that credit risk remains controllable, and future focus will be on how banks handle risks related to commercial real estate projects in Hong Kong.

Assistant Vice President (Banking Supervision) Zhu Liqiao added that the specific classified loan ratio in Hong Kong has been gradually increasing since 2024, primarily influenced by the local commercial real estate sector. Currently, commercial real estate loans account for about 14% of total loans in Hong Kong, with no concentrated risks, and banks' provisions are also sufficient.

She mentioned that the highest specific classified loan ratio was 7.43% during the Asian financial crisis in 1999, and 1.61% during the global financial crisis in 2009.

In addition, regarding support for small and medium-sized enterprises (SMEs), the dedicated task force has increased the special fund reserved by 18 participating banks for SMEs from HKD 370 billion in October 2024 to HKD 420 billion in October 2025.

As of the end of last December, over 78,000 SME loans benefited from various support measures announced since March 2024, involving a credit amount exceeding HKD 184 billion.

(ha/)