Hong Kong Monetary Authority chief executive Joseph Yam Chi-kwong has called for greater understanding between creditors and mainland authorities as a delegation of SAR bankers arrives for talks in Beijing. The Hong Kong Association of Banks delegation would hold discussions with central-bank and government officials on credit problems relating to mainland enterprises, particularly the restructuring of insolvent Guangdong Enterprises (Holdings), Mr Yam said. He said the delegation was seeking a better understanding of the way in which Beijing dealt with problems relating to loans to mainland enterprises. 'These problems require a deeper understanding between both sides [creditor banks and the central government]. Both sides have their own responsibilities in arriving at proper solutions,' Mr Yam said. 'Solutions to these problems could possibly be worked out more easily if the creditor banks can discuss directly with the People's Bank of China and other key government officials.' Mr Yam said he considered it important to give the creditor banks a final chance to voice their opinion about the restructuring of Guangdong Enterprises, to be announced later this month. He emphasised the role of the authority in the discussions was to act as a channel of communication between the creditor banks, the People's Bank of China and other relevant governmental departments. 'I very much hope to take this opportunity to explain to the key central government officials and the People's Bank of China that while the way they dealt with credit problems of mainland enterprises is in the right direction, it could also involve certain risks, including systemic risks, which have to be managed in a proper manner,' he said. Mr Yam said it was still too early for the authority to consider issuing an industry-wide set of guidelines on provisioning policies relating to overdue loans to mainland enterprises. He agreed with Chief Executive Tung Chee-hwa that there was still room for banks to reduce the prime lending rate.