The Hong Kong Monetary Authority (HKMA) published survey results showing a slight improvement in credit conditions for small and medium-sized enterprises (SMEs) in the third quarter of 2026. Perceptions of banks’ approval stance improved and fewer borrowers reported tighter conditions on existing credit lines, although the success rate for new credit applications declined. Excluding respondents who expressed no view, 83% perceived banks’ credit approval stance as unchanged or easier than six months earlier, up from 78% in the previous quarter. The share perceiving a more difficult stance fell to 17% from 22%. Among SMEs with existing credit lines, 2% reported a tighter bank stance, down from 4%. Such tightening can include changes to interest rates, collateral requirements or loan terms, rather than reductions in available credit alone. Only 2% of respondents applied for new bank credit during the quarter. Among those with known outcomes, 78% reported fully or partially successful applications, down from 85% in the previous quarter. The findings on existing credit lines and new applications require caution because these groups represented only 18% and 2% of surveyed SMEs, respectively, leaving results prone to large fluctuations. Perceptions of banks’ approval stance also do not necessarily reflect actual difficulties obtaining credit.
HKMA survey finds slight improvement in SME credit conditions in the third quarter of 2026
The Hong Kong Monetary Authority’s survey found slightly improved credit conditions for small and medium-sized enterprises in the third quarter of 2026, with better perceptions of bank approvals and fewer reports of tighter existing credit lines. However, the share of applicants with known outcomes reporting full or partial success fell to 78% from 85% in the previous quarter. Small samples make the findings on existing credit lines and new applications prone to large fluctuations.