The HKMA's Q3 2026 survey reveals improved SME credit perceptions, with 83% seeing similar or easier approval stances, up from 78% in Q2.

The Hong Kong Monetary Authority (HKMA) released the results of its Survey on Small and Medium-Sized Enterprises (SMEs)’ Credit Conditions for the third quarter of 2026 on November 6. The findings indicate a slight improvement in SMEs’ credit conditions, with notable changes in perceptions of banks’ credit approval stances and reported tightening of existing credit lines.

Excluding respondents who answered "no idea/don’t know," 83% of SMEs perceived banks’ credit approval stance as "similar" or "easier" compared to six months earlier, an increase from 78% in the second quarter. Meanwhile, the proportion of SMEs perceiving a "more difficult" stance fell to 17%, down from 22% in the previous quarter. The HKMA noted that such perceptions could be influenced by factors such as media reports, business conditions, and opinions from personal networks, rather than direct borrowing experiences.

Among SMEs with existing credit lines, 2% reported a "tighter" stance from banks, a decrease from 4% in the second quarter. The survey defines a tighter stance as measures including reductions in used or unused credit lines, higher interest rates, additional collateral requirements, or shorter loan tenors. However, the HKMA cautioned that these reports may not directly reflect changes in banks’ credit supply.

Only 2% of surveyed SMEs applied for new bank credit during the third quarter. Among those who had received outcomes, 78% reported fully or partially successful applications, a decline from 85% in the previous quarter.

Source link