Key facts
- The HKMA plans legislative amendments in the first quarter of 2027 to the Banking (Capital) Rules.
- The changes would designate 11 post-secondary institutions and three park companies as Domestic Public Sector Entities.
- The designation is intended to lower capital costs for banks lending to local tertiary institutions.
Hong Kong's de facto central bank plans to introduce legislative amendments in the first quarter of 2027 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 will designate 11 post-secondary institutions and three park companies as Domestic Public Sector Entities, granting them a status that reduces the capital banks must hold against loans to them. The report did not state the size of the capital reduction or the value of lending involved.
The Northern Metropolis is a Hong Kong development area whose university towns are intended to concentrate education, technology and industry. The report did not name the institutions or park companies involved, or give a date for when the amendments would take effect.