Hong Kong to cut capital charges on loans to Northern Metropolis university towns

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Hong Kong’s de facto central bank plans to reduce capital charges on loans to designated universities and park companies involved in developing university towns in the Northern Metropolis. Legislative amendments are expected in the first quarter of next year to encourage bank lending and accelerate the project.

Hong Kong’s de facto central bank plans to introduce legislative amendments in the first quarter of next year to lower the capital costs for banks lending to local tertiary institutions, in a bid to speed up development of the university towns in the Northern Metropolis. Under the proposed changes to the Banking (Capital) Rules, the Hong Kong Monetary Authority (HKMA) will designate 11 post-secondary institutions and three park companies as “Domestic Public Sector Entities”, granting them...