Hong Kong Credit Risk Challenges and Innovations 2023

Our report reviews the outlook for the credit risk sector in Hong Kong and discusses the opportunities for banks to improve and expand their services.

Macroeconomic challenges including rising interest rates will impact the credit risk environment in the year to come, increasing stress on borrowers in areas including real estate and SMEs, and increasing the risk of defaults.

At the same time, new technology is giving banks the opportunity to refine their lending processes and products through automation and use of new data sources such as those provided by the new Commercial Data Interchange, launched in October 2022. The ending of the remaining Covid-era restrictions in Hong Kong will also benefit the whole financial sector.