SPC Credit to court big corporates with new banking licence
The Hong Kong Monetary Authority has granted SPC Credit a restricted banking licence to help it tap cheaper funding and win more support from commercial clients.
The company has operated as a deposit-taking company since 1976.
Its main business is the provision of residential mortgage loans, taxi and public bus financing and consumer finance.
It became part of the US-based insurer American International Group (AIG) in January last year.
President Martin Lai said that with backing from AIG, SPC was already able to tap funding at a cheaper cost than its peers. But being granted a restricted banking licence will help SPC, which has more than HK$100 million in capital, cut funding costs further, he said.
Mr Lai added that the new licence would also help SPC court more business relationships with big corporations.
SPC has been very aggressive in tapping the market for government-subsidised Home Ownership Scheme flat mortgages.
