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Beware of Wing Hang Bank

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  1. #71

    I have no intention of suing them. There is nothing to gain from it. On reflection I would say it was a combination of incompetence, arrogance, and some change in credit policy at the bank.

    The main thing that upset me was their attitude: it was as if they considered the loan to be a non recourse general revolving facility or overdraft; when the reality was that it was overcollateralised from the beginning - a 50% guarantee from the government, and *unlimited* (joint and several) guarantees from the directors. The directors showed documents demonstrating a combined net worth exceeding 25 times the amount of the loan outstanding - this had absolutely zero impact on their attitude.

    The loan was approved in April-09 - we gave them audited financial accounts dated Mar-08 and that was all they had (other than a current list of debtors, creditors) to base their lending decision on. Note that there had been a global financial crisis in the time between the date of the accounts and them approving the loan. Yet no questions were asked about financial performance during the year ended Mar-09. After a small loss was reported for 2009 - which was mainly due to writing down the value of inventory - they decide to call in the loan unless we put up a deposit against it ! Surely any comeptent loan officer would have inquired about the FY-09 performance before granting the loan if they were in some way worried about the value of the guarantees, since it would have been obvious to anyone with a brain that financial performance between the date of the accounts and the time the loan was approved must have been impaired. The corollary to that being the assumption that the guarantees would make any slight adverse financial performance on the mart of the company largely irrelevant. It would seem that between April 2009 and april 2010 they had some policy change to reduce their lending book.

    I come from a banking bankground myself, I have many friends and colleagues in the finance and banking industry, and not one person who knows the details thinks the bank has acted in a reasonable way (even ignoring the "stupid mistakes" with accrued interest and early repayment fees).


  2. #72

    Join Date
    Feb 2009
    Location
    Gulf Region, ex Mid-Levels
    Posts
    1,933

    Some of us understand you here, make a regulatory complaint (not sue them), hopefully the temporary idiot you had might be reassigned to licking stamps (or selling credit cards) before he inflicts more damage to his own company let alone his clients.

    The article below might cheer you up though.

    FT.com / Columnists / Lucy Kellaway - Nice dud is key to office harmony


  3. #73

    Join Date
    Jun 2006
    Posts
    122
    Quote Originally Posted by sonic-dragon:
    The loan was approved in April-09 - we gave them audited financial accounts dated Mar-08 and that was all they had (other than a current list of debtors, creditors) to base their lending decision on. Note that there had been a global financial crisis in the time between the date of the accounts and them approving the loan. Yet no questions were asked about financial performance during the year ended Mar-09. After a small loss was reported for 2009 - which was mainly due to writing down the value of inventory - they decide to call in the loan unless we put up a deposit against it ! Surely any comeptent loan officer would have inquired about the FY-09 performance before granting the loan if they were in some way worried about the value of the guarantees, since it would have been obvious to anyone with a brain that financial performance between the date of the accounts and the time the loan was approved must have been impaired. The corollary to that being the assumption that the guarantees would make any slight adverse financial performance on the mart of the company largely irrelevant. It would seem that between April 2009 and april 2010 they had some policy change to reduce their lending book.
    Very shabby treatment, I think SME's in HK get a very raw deal with regards loans and credit. On the bright side though it teaches you to run a business without much debt.

    I just wonder though if the bank staff back in April 09 made a mistake by not looking over your current accounts and recording the data, and this is an attempt to sweep it all under the carpet? The reason I say this is because we made an enquiry with our bank regarding the Govt SME loan scheme and they wanted up to date (up to the past month) audited accounts before they would even consider it.

    We recently also updated a 10 year old insurance/savings policy and we had to complete a 5 page risk assesment test which they would furnish to the regulators.

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