SME credit conditions improve slightly in Q3

About 83% perceived an easier approval stance, up from 78%.

Credit conditions amongst small and medium-sized enterprises (SMEs) improved slightly in the third quarter (Q3) of 2026, according to a survey by the Hong Kong Monetary Authority (HKMA).

Excluding respondents who answered “no idea / don’t know,” 83% perceived a “similar” or “easier” credit approval stance relative to six months ago, up from 78% in Q2.

Meanwhile, 17% perceived a “more difficult” credit approval stance, compared to 22% in the previous quarter.

HKMA said the perception of a more difficult credit approval stance may not necessarily reflect actual difficulties faced by SMEs in obtaining bank credit.

Perception could be affected by a number of factors, such as media reports, business conditions, and opinions of relatives and friends, the agency added.

Amongst respondents with existing credit lines, 2% reported a "tighter" banks' stance, down from 4% in Q2.

In the survey, a “tighter” stance denotes a range of possible measures or arrangements, such as reducing unused and used credit lines, raising the interest rate, imposing additional collateral requirements, or shortening loan tenor.

The respondents' indication of banks' stance on existing credit lines may not directly reflect banks’ supply of credit to SMEs, according to HKMA.

On new credit applications from SMEs, 2% of respondents reported that they had applied for new bank credit during the quarter.

Amongst those who had already known their application outcomes, 78% reported fully or partially successful applications, down from 85% in Q2.

The quarterly survey, which the Hong Kong Productivity Council has conducted for HKMA since Q3 2016, covers about 2,500 SMEs from different economic sectors each time.