HKMA Postpones Stress Test for Banks Amid COVID-19 Outbreak
HKMA decided to postpone the supervisor-driven stress test exercise for 2020 by one year. The exercises is being postponed to 2021 to provide additional operational capacity for banks to respond to the challenges brought by the COVID-19 outbreak. Additionally, HKMA published a Circular addressed to all licensed banks, providing information on the temporary USD Liquidity Facility that was announced to help banks meet their USD funding needs. The USD liquidity will be provided in the form of repurchase transactions for a term of seven days, with a total of USD 10 billion being available under the facility.
Keywords: Asia Pacific, Hong Kong, Banking, COVID-19, Stress Testing, US Dollar Liquidity Facility, Liquidity Risk, Repo Transactions, HKMA
Featured Experts
Metin Epözdemir
Metin Epözdemir helps European and African banks with design and implementation of credit risk, stress testing, capital management, and credit loss accounting solutions.
Amnon Levy
Financial researcher; authority in credit portfolio management and AI/ML, risk-based pricing, climate and credit, CECL/IFRS 9; credit and ALM
Emil Lopez
Credit risk modeling advisor; IFRS 9 researcher; data quality and risk reporting manager
Related Articles
PRA Proposes Changes to Consolidated Prudential Rules Under CRD5/CRR2
PRA proposed rules (in CP12/21) for the application of existing consolidated prudential requirements to financial holding companies and mixed financial holding companies that have been approved or designated in accordance with Part 12B of the Financial Services and Markets Act 2000 (FSMA).
ECB Extends Leverage Ratio Relief for Banks Until March 2022
ECB Banking Supervision announced that euro area banks it directly supervises may continue to exclude certain central bank exposures from the leverage ratio until March 2022.
OSFI Consults on Treatment of Credit Valuation Adjustments
OSFI decided to increase the Domestic Stability Buffer from 1.00% to 2.50% of total risk-weighted assets, with effect from October 31, 2021.
HKMA Requires Banks to Submit Plans for Fintech Adoption
HKMA is requesting banks to participate in a tech baseline assessment, which forms part of the HKMA Fintech 2025 strategy.
OSFI Consults on Operational Risk Capital Data Management Expectations
OSFI published two documents to consult on the management of operational risk capital data for institutions required, or for those applying, to use the Basel III standardized approach for operational risk capital in Canada.
NGFS on Addressing Financial Stability Issues from Biodiversity Loss
The NGFS Study Group on Biodiversity and Financial Stability published a Vision paper exploring the case for action in addressing the financial stability concerns arising from biodiversity loss.
ACPR Publishes CREDITIMMO Version 2.3.0 Taxonomy for Banks
ACPR published the final version of CREDITIMMO 2.3.0 taxonomy for the decree of October 31, 2021.
EC Prolongs Italian Guarantee Scheme for Non-Performing Loans
EC, has approved, under the EU State Aid rules, the fourth prolongation of the Italian guarantee scheme to facilitate the securitization of non-performing loans.
ECB Amends Guideline on Temporary Collateral Easing Measures
ECB published Guideline 2021/975, which amends Guideline ECB/2014/31, on the additional temporary measures relating to Eurosystem refinancing operations and eligibility of collateral.
EIOPA Releases Report on Artificial Intelligence Governance Principles
EIOPA published a report, from the Consultative Expert Group on Digital Ethics, that sets out artificial intelligence governance principles for an ethical and trustworthy artificial intelligence in the insurance sector in EU.
