The Hong Kong Association of Banks (HKAB), The DTC Association (DTCA) and the Hong Kong Monetary Authority (HKMA) jointly announced today (23 November 2007) the upcoming expansion of the Commercial Credit Reference Agency (CCRA) in Hong Kong. From 1 March 2008, the CCRA will be expanded to cover sole proprietorships and partnerships.

The CCRA was established in November 2004 to address the need of small and medium-sized enterprises (SMEs) for greater access to credit, and of lending institutions for reliable credit information about their SME customers. The CCRA has to date collected over 75,000 credit records of 56,000 SMEs which operate as limited companies. Over the past three years, the total number of records maintained at the CCRA has nearly tripled (an increase of more than 48,000 records), while the number of SME limited companies covered has more than doubled (an increase of around 30,000 companies). Building on its experience and success, the CCRA will be expanded to cover sole proprietorships and partnerships from 1 March 2008.

"SME lending has grown remarkably in recent years. The CCRA has played a vital role in facilitating lending institutions' assessment of customers, and in enabling customers with a strong credit history to have faster access to credit at more competitive terms. More businesses will be able to enjoy the benefits of credit data sharing as they are included in the CCRA from 1 March 2008", said Mr Peter Sullivan, Chairman of HKAB.

"SMEs have always played a vital role in the economic growth of Hong Kong", said Mr Geoffrey Mansfield, Chairman of DTCA. "The expansion of the CCRA to include those businesses operating as sole proprietorships and partnerships is a very positive development in facilitating access to credit for those additional enterprises."

Mr Simon Topping, Executive Director (Banking Policy) of the HKMA, said, "The continued development of the CCRA will help further strengthen the credit risk management of the banking sector, which in turn will be conducive to enhancing the safety and soundness of the financial system."

HKAB, DTCA and the HKMA have issued a revised leaflet to provide more information about the expanded scheme, including the aim and benefits of the CCRA, its operation and data-security safeguards.

23 November 2007

The Hong Kong Association of Banks (HKAB), The DTC Association (DTCA), the Hong Kong Monetary Authority (HKMA) and Dun & Bradstreet (HK) Ltd. (D&B) jointly announced today the launch of a Commercial Credit Reference Agency (CCRA) in Hong Kong. The CCRA, to be operated by D&B, the service provider appointed by the industry associations, will collate information about the indebtedness and credit history of small and medium-sized enterprises (SMEs) and make such information available to members of HKAB and DTCA for the purpose of granting, reviewing or renewing an SME's credit.

"With increased information about the creditworthiness of borrowers, SMEs with a good credit history will be able to obtain loans more quickly and at more competitive prices," said Mr. Julian Fong, Acting Chairman of HKAB. "At the same time, lending institutions can expedite the loan approval process and strengthen their credit risk management," he added.

Mrs. Lina Lee, Executive Committee member of DTCA, said, "Many members of the DTC Association are active lenders to SMEs. The services of the CCRA will undoubtedly enhance the credit risk assessment of lending institutions and enable them to provide better lending terms and rates to SMEs."

Mr. Arthur Yuen, Executive Director (Banking Development) of the HKMA, said, "CCRA is a common feature in leading financial centres. The setting up of a CCRA in Hong Kong is an essential element to enhance the safety and soundness of the financial system and is widely supported by both the financial industry and the business sector."

Mr. Lawrence Yee, Vice President & Managing Director of D&B, said, "After many months of close collaboration with HKAB, DTCA and HKMA, D&B is proud to be able to provide this world-class solution on schedule to help enhance the financial infrastructure in Hong Kong."

Contemporaneous with the launch of the CCRA, HKAB, DTCA and the HKMA have issued a revised leaflet on the CCRA to provide more up-to-date information about the scheme to the public.