The ratio of bad and doubtful loans, known as the classified loan ratio, continues to face upward pressure but the overall risk is manageable, said Hong Kong Monetary Authority deputy chief executive Arthur Yuen Kwok-hang.

Speaking at the Legislative Council panel meeting for financial affairs, Yuen said the classified loan ratio has been rising slowly over the past two to three years.

The ratio stood at 1.99 percent as of the third quarter of last year, while the data in the fourth quarter was initially similar to the third quarter, he added.

The upward pressure came from higher interest rates and private developers having issues in the mainland real estate market, Yuen said.

However, he noted the overall risk is manageable as the related exposure is not concentrated as well as the high provision coverage of classified loans.

Meanwhile, Yuen said authorities had introduced nine support measures for small and medium enterprises last year, benefiting more than 31,000 SMEs in the first nine months and involving a loan amount of more than HK$73 billion.

STAFF REPORTER