Hong Kong Banks Anticipate Rise In Tax Loans
Hong Kong banks are predicting a considerable
increase of as much as 20 per cent in tax loan applications within the
next few weeks as workers are either being made redundant or their usual
Christmas/end of year bonus is being withdrawn amid the current economic
slowdown. Hong Kong Chinese Bank head of consumer finance
Albert Yip Chin-yung says that some banks
have reduced their loan rates. Most workers applying for the tax loans
are civil servants, teachers and other professionals who borrowed
on average KH$80,000 each. Bank of America (Asia) first vice-president
of marketing and planning Katty Leigh also forecast tax loan applications
to be on the rise by about 20 per cent and investment borrowing to take
a turn for the worse. She said: 'Customers used to borrow for investment
purposes but given that investment sentiment is weak, we expect borrowing
this year will be reduced by 10 to 15 per cent.' The Shanghai Commercial Bank spokesman is
also anticipating a rise in the loans: 'We have heard that a lot of employers
are cutting double pay and bonuses which are a traditional source of funds
for individuals to make their tax payments.' .
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