Why should we provide consent?
Small and medium-sized enterprises, or SMEs, have sometimes had difficulty obtaining credit because they were unable to provide proof of their credit standing. With the introduction of a database which contains reliable credit information on SMEs, the following benefits could be expected:
- It should be easier for banks to assess the creditworthiness of potential borrowers; hence the loan approval process could be expedited
- Creditworthy borrowers should be able to obtain loans more quickly and at more competitive prices
- The good credit records of SMEs could work as a proof of the SMEs' good financial standing. As a result, SMEs could allocate their liquidity to their business activities rather than pledge them to AIs as collateral for credit facilities.
The CCRA is an important addition to the financial infrastructure of Hong Kong, bringing us on par with other major financial markets, such as the US and the UK. Your support is important for the CCRA to materialise its intended purpose therefore:
How will our data be protected?
- Enabling a steady and healthy growth of the banks and financial institutions of Hong Kong and therefore strengthen our status as an international financial center.
- Strengthening investors' confidence to build up business in Hong Kong by increasing the transparency of the Hong Kong financial industry.
- Providing a strong base for the development and advancement of the Hong Kong economic growth.
Not anyone can have access to the data. Only lending institutions and their participating subsidiaries, which are regulated by the HKMA, can have access to Qualifying Companies' information maintained by the CCRA. Lending institutions can access the CCRA database when and only when they are assessing your application for a credit facility, or reviewing or renewing your existing facilities. Lending institutions cannot access the CCRA database for any other purposes such as marketing.
Apart from the usual demographic information such as company name, address, phone number, etc, only credit information will be submitted to the CCRA. Credit information in this context includes positive as well as negative data. Positive data refer to the limits of your credit facilities and the fact that whether collateral is provided. Negative data refer to repayments that are overdue more than 60 days. Hence, there is no need for you to be concerned whether information such as the balance sheet, the assets of directors, and so forth will be provided to the CCRA
The CCRA's data operation is run separately at Hong Kong Interbank Clearing Limited to ensure complete separation of the CCRA and the D&B databases. The operation of CCRA is in full compliance with HKMA's guidelines and regulations set by HKAB and DTCA.
To ensure full transparency and data accuracy, an SME will be allowed to access its own information by requesting a CCRA report
held at the CCRA at all times and may request correction
if there are errors in the report.
How do we provide consent?
Lending Institutions will need to have your consent before they can contribute the credit data to the CCRA. They normally include the requisite consent provision in their account terms and conditions of banking services, facility letter or relevant documentation. Consent needs to be provided to each of your lending institutions if you have borrowing relationships with more than 1 institution.
Please contact your lending institution(s) to arrange for the completion of the documentation.
If you want to find out more about how to provide consent, please contact us
Alternatively, click here to provide with your contact details
and a CCRA customer service officer will contact you within the next business day.