Featured Product

    HKMA Publishes the Annual Report for 2018

    April 26, 2019

    HKMA published the annual report for 2018, which summarizes its work activities during 2018. The report reveals that the Hong Kong banking system remained sound in 2018, notwithstanding increased uncertainties in the global economy and the financial markets.

    The report highlights that substantial progress was made on the local implementation of international regulatory standards, including capital adequacy standards, disclosure standards, liquidity standards, and large exposure limits. HKMA’s interface with the banking industry was enhanced to ensure an appropriate balance between supervisory effectiveness and market development. Meanwhile, HKMA continued its work to ensure there is a credible resolution regime for authorized institutions, including introducing rules on minimum loss-absorbing capacity requirements to address a significant impediment to authorized institutions’ resolvability.

    During the year, HKMA continued to focus its supervisory efforts on reviewing the effectiveness of authorized institutions’ liquidity and credit risk management systems. In view of growing cybersecurity threats and increasing adoption of fintech in the banking industry, HKMA stepped up the supervision of authorized institutions’ technology risk management and operational resilience. HKMA also published a revised guideline on authorization of virtual banks in May and began to process applications for authorization as virtual banks. In addition, the scope of the Banking Made Easy initiative was expanded in September to facilitate the adoption of regulatory technology (regtech) by banks. Three new workstreams focusing on surveillance technologies for AML/CFT, regtech for prudential risk management and compliance, and machine-readable regulations were created. As part of the Cyber Resilience Assessment Framework (C-RAF), during the year, HKMA conducted on-site examinations focusing on authorized institutions’ cyber-security controls, outsourcing arrangements, and information technology governance. 

    On conduct supervision, HKMA took further steps to enhance the supervision of authorized institutions’ sales practices for investment and insurance products, facilitate access to barrier-free banking services to customers with disabilities, and promote a customer-centric corporate culture. HKMA also reviewed authorized institutions’ market risk management for their debt securities portfolios. Thematic on-site examinations were undertaken to evaluate authorized institutions’ compliance with the new international standards on treasury activities, including the Foreign Exchange Global Code, and the margining and risk mitigation standards on non-centrally cleared over-the-counter (OTC) derivatives.

     

    Keywords: Asia Pacific, Hong Kong, Banking, Annual Report, Regtech, Cyber Risk, Market Risk, TLAC, HKMA

    Related Articles
    News

    Regulators Fine Goldman Sachs for Risk Management Failures

    FCA and PRA in the UK, FED in the US, and the authorities in Singapore have fined Goldman Sachs for risk management failures in connection with the 1Malaysia Development Berhad (1MDB).

    October 23, 2020 WebPage Regulatory News
    News

    Canada Hosts International Conference of Banking Supervisors

    BCBS announced that OSFI and the Bank of Canada hosted the 21st International Conference of Banking Supervisors (ICBS) virtually on October 19-22, 2020.

    October 22, 2020 WebPage Regulatory News
    News

    FCA Proposes More Measures to Help Insurance Customers Amid Crisis

    FCA proposed guidance on how firms should continue to seek to help customers who hold insurance and premium finance products and may be in financial difficulty because of COVID-19, after October 31, 2020.

    October 21, 2020 WebPage Regulatory News
    News

    EBA Issues Opinion to Address Risk Stemming from Legacy Instruments

    EBA issued an opinion on prudential treatment of the legacy instruments as the grandfathering period nears an end on December 31, 2021.

    October 21, 2020 WebPage Regulatory News
    News

    ESRB Publishes Non-Bank Financial Intermediation Risk Monitor for 2020

    ESRB published the fifth issue of the EU Non-bank Financial Intermediation Risk Monitor 2020 (NBFI Monitor).

    October 21, 2020 WebPage Regulatory News
    News

    HM Treasury Publishes Policy Statement Amending Benchmarks Regulation

    HM Treasury announced that the new Financial Services Bill has been introduced in the Parliament.

    October 21, 2020 WebPage Regulatory News
    News

    APRA Initiates Action Against a Bank for Liquidity Compliance Breach

    APRA announced that it has increased the minimum liquidity requirement of Bendigo and Adelaide Bank for failing to comply with the prudential standard on liquidity.

    October 21, 2020 WebPage Regulatory News
    News

    PRA Consults on Implementation of Certain Provisions of CRD5 and CRR2

    PRA published the consultation paper CP17/20 to propose changes to certain rules, supervisory statements, and statements of policy to implement elements of the Capital Requirements Directive (CRD5).

    October 20, 2020 WebPage Regulatory News
    News

    US Agencies Finalize Rule to Reduce Impact of Large Bank Failures

    US Agencies adopted a final rule that applies to advanced approaches banking organizations and aims to reduce interconnectedness in the financial system as well as to reduce contagion risks associated with the failure of a global systemically important bank (G-SIB).

    October 20, 2020 WebPage Regulatory News
    News

    US Agencies Finalize Rule on Net Stable Funding Ratio Requirements

    US Agencies (FDIC, FED, and OCC) adopted a final rule that implements the net stable funding ratio (NSFR) for certain large banking organizations.

    October 20, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 6004