Following the recent rate cut, Hong Kong lenders are cautiously easing household lending as they navigate a recovery that remains uneven and filled with mixed signals, according to credit reference agency TransUnion.
That has prompted major banks to lower their prime rates and reduce borrowing costs for households, paving the way for Hong Kong’s consumer credit market to return to more normalised conditions, according to the Chicago-based firm, which operates in more than 30 countries.
“There’s kind of a cautious easing happening,” said Marie Claire Lim Moore, CEO of TransUnion’s Hong Kong operation, in an interview with the Post.
“Retail sales are picking up, but unemployment remains high, so lenders are still being cautious in their decisions.”
