MICROCAPITAL BRIEF: Bank of China (Hong Kong) Limited Offers Microfinance Loans, Training

The Bank of China (Hong Kong) Limited (BOCHK), a commercial banking group in Hong Kong, recently launched its “Microfinance Scheme,” which provides training and loans to “people who wish to start their own business, become self-employed or achieve self-enhancement through training, skills upgrading or obtaining professional qualifications” [1]. The maximum amount for a business start-up loan is HKD 300,000 (USD 38,705), while the limit for a loan for activities defined as self-employment is HKD 200,000 (USD 25,803). The maximum amount for a self-enhancement loan, such as for an educational course, is HKD 100,000 (USD 12,900) [2]. Mentorships and entrepreneurship training programs are available to borrowers.

For the year 2010, BOCHK reported total assets of USD 214 billion. As of 2011, the 67 Chinese microfinance institutions (MFIs) that report data to the US-based nonprofit Microfinance Exchange (MIX) held deposits of USD 27.2 billion and loans of USD 13.3 billion outstanding to 569,000 borrowers.

By Brendan Millan, Research Associate

About Bank of China (Hong Kong) Limited (BOCHK): Established in 2001, BOCHK is a Hong Kong-based commercial banking group. It established a microfinance loan and training program in 2012. As of 2010, BOCHK has total assets of USD 214 billion.

Sources and Additional Resources:

[1] Bank of China: “BOCHK Launches Microfinance Scheme”, http://www.bochk.com/web/about/press_release/press_release_details.xml?section=about&level_2=press_release&fldr_id=31522&selFldr=31522&pfid=84&cid=57741

[2] Hong Kong Mortgage Loan Corporation Limited: “Microfinance Scheme”, http://www.hkmc.com.hk/

MicroCapital.org story, November 16, 2012, “China Records Increase in Number of Microcredit Institutions”, https://www.microcapital.org/microcapital-brief-china-records-increase-in-number-of-microcredit-institutions/

MicroCapital.org story, October 29, 2012, “China Development Bank, China Foundation for Poverty Alleviation Partner on Microcredit”, https://www.microcapital.org/microcapital-brief-china-development-bank-china-foundation-for-poverty-alleviation-partner-on-microcredit/

MicroCapital.org story, February 6, 2012, “Hong Kong Mortgage Corporation (HKMC) to Launch Pilot Microfinance Program in China”, https://www.microcapital.org/microcapital-brief-hong-kong-mortgage-corporation-hkmc-to-launch-pilot-microfinance-program-in-china/

MicroCapital.org story, January 24, 2012, “Microfinance Institutions in China Report $58b in Outstanding Loans,”https://www.microcapital.org/microcapital-brief-microfinance-institutions-in-china-report-58b-in-outstanding-loans/

MicroCapital.org Story, June 21, 2011, “After Farmers Reject Bank Cards, China’s Harbin Bank “Cash Caravans” Bring Microfinance to Villagers”

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