HONG KONG, Oct. 26 (Xinhuanet) -- The Hong Kong Association of Banks (HKAB), the DTC Association (DTCA), the Hong Kong Monetary Authority (HKMA) and Dun and Bradstreet (HK) Ltd. (D & B) jointly announced here Tuesday the launch of a Commercial Credit Reference Agency (CCRA) in Hong Kong.

    The CCRA, to be operated by D & B, the service provider appointed by the industry associations, will collate information about the indebtedness and credit history of small and medium-sized enterprises (SMEs) and make such information available to members of HKAB and DTCA for the purpose of granting, reviewing or renewing an SME's credit.

    "With increased information about the creditworthiness of borrowers, SMEs with a good credit history will be able to obtain loans more quickly and at more competitive prices," said Julian Fong, Acting Chairman of HKAB. "At the same time, lending institutions can expedite the loan approval process and strengthen their credit risk management," he added.

    Lina Lee, Executive Committee member of DTCA, said, "Many members of the DTC Association are active lenders to SMEs. The services of the CCRA will undoubtedly enhance the credit risk assessment of lending institutions and enable them to provide better lending terms and rates to SMEs."

    Arthur Yuen, Executive Director (Banking Development) of the HKMA, said, "CCRA is a common feature in leading financial centers. The setting up of a CCRA in Hong Kong is an essential element to enhance the safety and soundness of the financial system and is widely supported by both the financial industry and the business sector." Enditem