HK central bank survey shows slight improvement in SME credit conditions in Q3 2026
The Hong Kong Monetary Authority's quarterly survey found 83% of SMEs viewed bank lending attitudes as unchanged or easier, up from 78% in the previous quarter. The proportion reporting tighter loan conditions fell to 2% from 4%.
The Hong Kong Monetary Authority (HKMA) on 6 November released the results of its survey on small and medium-sized enterprise (SME) lending conditions for the third quarter of 2026. The survey indicated a slight improvement in SME credit conditions.
Excluding respondents who answered "no opinion/don't know", 83 per cent of SMEs said that banks' lending attitude in the third quarter was "no different" or "easier" compared with six months earlier, up from 78 per cent in the previous quarter. Seventeen per cent considered banks' attitude "more difficult", down from 22 per cent in the prior quarter. The HKMA noted that perceptions of lending difficulty do not necessarily reflect actual borrowing difficulties and can be influenced by factors such as media reports, business conditions and opinions of relatives and friends.
Among respondents whose loans had been approved, 2 per cent said banks had "tightened" their lending stance, down from 4 per cent in the previous quarter. The survey defined tightening to include various possibilities such as reducing credit lines or loan amounts, raising interest rates, increasing collateral requirements or shortening loan tenors. The HKMA cautioned that these responses do not directly reflect actual bank lending to SMEs.
The survey also collected data on new loan applications. Two per cent of respondents said they had applied for new bank loans in the third quarter. Among those who knew the outcome, 78 per cent reported that their applications were fully or partially successful, down from 85 per cent in the previous quarter.
The HKMA noted that the number of SMEs with approved loans or new loan applications was small, accounting for only 18 per cent and 2 per cent of respondents respectively, meaning the results are prone to significant fluctuations and should be interpreted with caution. The quarterly survey, commissioned by the HKMA and conducted by the Hong Kong Productivity Council since the third quarter of 2016, covers about 2,500 SMEs across different industries.