HKMA proposes capital rule revision to boost financing for Northern Territories projects
The Northern Territories Financial Advisory Working Group discussed financing for the Northern Territories University City. The HKMA proposed revising banking capital rules to classify 11 tertiary institutions and 3 park companies as local public entities, reducing bank costs. The amendment is expec
The Northern Territories Financial Advisory Working Group, jointly established by the Hong Kong Monetary Authority (HKMA) and the Hong Kong Association of Banks, held its third meeting. Attendees included representatives from the Development Bureau, the Education Bureau, the Financial Services and Treasury Bureau, the Innovation, Technology and Industry Bureau, and 25 banks participating in the working group.
To further enhance banking sector financing support for Northern Territories projects, the HKMA proposed amending the Banking (Capital) Rules. The amendment would designate 11 tertiary institutions and three park companies as local public entities, helping to lower banks' capital costs and facilitate these institutions' access to bank financing, thereby accelerating project implementation. The HKMA plans to submit the amendment to the Legislative Council in the first quarter of 2027, aiming for it to take effect in the second quarter.
The Education Bureau briefed the meeting on the latest developments of the Northern Territories University City, including the positioning of three university towns, campus development plans, and related financial arrangements.
Participants discussed feasible financing arrangements for the Northern Territories University City, such as loans and public-private partnerships, and provided professional advice. Banks involved in the working group indicated they would offer appropriate financial services to support the coordinated development of the Northern Territories University City with surrounding industrial parks and projects.