BOC takes the lead in fighting the epidemic

The outbreak of the new coronavirus pneumonia has hit all walks of life, and individual and corporate customers of banks have been dragged down

The HKMA issued a circular to the banking industry yesterday saying that it was notified by some banks to launch temporary relief measures to help customers overcome the current difficulties, and recommended that the industry support the customers who are suffering from financial difficulties due to the epidemic. Under the principle of prudent risk management, Actively consider these temporary arrangements. BOC Hong Kong (02388) immediately announced the launch of five financial services support operations, including property mortgage loans that can “pay off interest and not repay the principal.”

HKMA Circular encourages banks to help bail out

The HKMA said that encouraging other banks to consider similar actions is expected to help reduce the economic impact of the outbreak. The circular mentioned that AIs should refer to the “Hong Kong Personal Financial Distress Handling Code” and “Hong Kong Corporate Financial Distress Handling Code” to clearly explain the relevant policies to staff and treat customers in a consistent manner.

The Association of Banks encourages member banks to actively study and launch different financial service support measures in accordance with the HKMA’s guidelines, to provide citizens and businesses with appropriate support to cope with the epidemic, and to cope with difficulties. It is understood that a number of large banks are studying and launching corresponding measures, and will announce details in the short term.

BOC has launched a mortgage “interest repayment but no principal repayment” plan. Customers can apply for a mortgage payment of one year or more in the bank, and the repayment record in the past 12 months is normal for a period of 6 months. 6 months, i.e. up to 12 months without repayment of principal and waiving handling fees. BOC said that customers who adopt this measure will only pay interest during the period of “interest repayment but not principal repayment”, so they have the opportunity to extend the loan period and increase interest expenses.

Up to 12 months

Industry insiders pointed out that banks have always had a mortgage “repayment of interest but not principal” arrangement, but they will not take the initiative to provide it. This time, the Bank of China made a high-profile announcement to help stabilize market confidence. It is reported that BOC has charges for changing the terms of the mortgage plan, and can adjust the repayment period and amount, etc., each charge of 1,000 yuan.

Cao Deming, Senior Vice President of Meridian Mortgage Referral, said that the ratio of mortgage arrears in Hong Kong over 3 months in recent years? Maintained at 0.02% to 0.03%, far lower than the 1% level at the time of SARS in 2003, and when banks approved mortgages There are stress tests on the ratio of contributions to income for customers. I believe that most owners have very high repayment ability. Unless the unemployment rate rises significantly in the future, there are not many individual customers who want to use “interest repayment but not principal”. . Relatively speaking, some small and medium-sized enterprises need to mortgage the property due to the problem of capital turnover. Such customers may have greater demand.

A few days ago, the tourism industry called on banks to promote “interest-bearing but not principal” mortgage loans. The director of the Hong Kong Tourism Promotion Association, Cui Dingbang, said that the new measures can create a win-win situation and mortgages are high-quality loans. The risks are limited.

In addition, BOC has also introduced other measures. Personally, customers fail to pay premiums for BOC Life’s designated products as scheduled, and the grace period is extended to June 30. In the unfortunate diagnosis of new pneumonia, BOC Life will provide an additional daily 500 yuan hospital cash protection; If bank customers fail to repay individual loans on time due to special circumstances, they can apply to BOC for exemption of related penalty interest and late repayment handling fees.

SME express loan approval limit of 2 million

On the corporate side, BOC’s “Special Loan Program for SMEs’ Epidemic Prevention” mainly arranges express loan approval for customers who have been established and operated for half a year or more. No collateral is required. The approval can be completed as soon as one day and the withdrawal can be implemented within three days. , The loan amount is up to 2 million yuan, and the repayment period is up to 60 months; if the enterprise is in the industry of manufacturing and operating anti-epidemic equipment and articles such as health and epidemic prevention, pharmaceutical products, BOC will assist customers to preferentially handle and purchase anti-epidemic materials Related account opening, global remittances, payment settlement and donations.

Hang Seng Bank (00011) stated that it has been paying attention to customers’ needs for mortgage loans and is currently studying the feasibility of the relevant scheme. An HSBC spokesman emphasized that the bank has maintained close communication with personal and business customers and understands the evolving financial needs.

Standard Chartered Bank revealed that the bank is studying different bailout options to assist customers with financial shortfalls or financial difficulties. Details will be announced later.


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