Featured Product

    HKMA Publishes Policy Modules Under Banking Exposure Limit Rules

    August 09, 2019

    HKMA published two Supervisory Policy Manual modules on Banking (Exposure Limits) Rules (BELR), in the Gazette, as statutory guidelines under section 7(3) of the Banking Ordinance. The Supervisory Policy Manual modules are CR-L-1 on “Consolidated Supervision of Concentration Risks: Banking (Exposure Limits) Rules—Rule 6” and CR-L-5 on “Major Acquisitions and Investments: BELR Part 3.”

    The revisions to these two modules are incidental to the implementation of the BELR, which replace the provisions related to exposure limits formerly set out in Part XV of the Banking Ordinance. Most changes to both Supervisory Policy Manual modules are minor in nature such as updates on cross-references (from provisions in the Banking Ordinance to the BELR) and technical details incidental to the BELR implementation (for example, the calculation of tier 1 capital instead of capital base). A more substantial change to CR-L-5 is the elaboration on the new exemptions introduced in the BELR for share acquisitions (that is, acquisition in the insurance business or for trading purposes). These new exemptions were introduced in response to the industry comments received during the making of the BELR.

     

    Keywords: Asia Pacific, Banking, BELR, Supervisory Policy Manual, Concentration Risk, Exposure Limits, Banking Ordinance, Credit Risk, Large Exposures, Basel III, HKMA

    Featured Experts
    Related Articles
    News

    FED Revises Capital Planning and Stress Testing Requirements for Banks

    FED finalized a rule that updates capital planning requirements to reflect the new framework from 2019 that sorts large banks into categories, with requirements that are tailored to the risks of each category.

    January 19, 2021 WebPage Regulatory News
    News

    ECB Releases Results of Bank Lending Survey for Fourth Quarter of 2020

    ECB published results of the quarterly lending survey conducted on 143 banks in the euro area.

    January 19, 2021 WebPage Regulatory News
    News

    ESAs Publish Reporting Templates for Financial Conglomerates

    ESAs published the final draft implementing technical standards on reporting of intra-group transactions and risk concentration of financial conglomerates subject to the supplementary supervision in EU.

    January 18, 2021 WebPage Regulatory News
    News

    EBA Publishes Report on Asset Encumbrance of Banks in EU

    EBA published the annual report on asset encumbrance of banks in EU.

    January 18, 2021 WebPage Regulatory News
    News

    MAS Revises Guidelines on Technology Risk Management

    MAS revised the guidelines that address technology and cyber risks of financial institutions, in an environment of growing use of cloud technologies, application programming interfaces, and rapid software development.

    January 18, 2021 WebPage Regulatory News
    News

    US Agencies Publish Updates for Call Reports, FFIEC 101, and FR Y-9C

    FED updated the reporting form and instructions for the FR Y-9C report on consolidated financial statements for holding companies.

    January 15, 2021 WebPage Regulatory News
    News

    EBA Proposes Guidelines for Establishing Intermediate Parent Entities

    EBA issued a consultation paper on the guidelines on monitoring of the threshold and other procedural aspects of the establishment of intermediate EU parent undertakings, or IPUs, as laid down in the Capital Requirements Directive.

    January 15, 2021 WebPage Regulatory News
    News

    EC Adopts Financial Reporting Changes Arising from Benchmark Reforms

    EC published Regulation 2021/25 that addresses amendments related to the financial reporting consequences of replacement of the existing interest rate benchmarks with alternative reference rates.

    January 14, 2021 WebPage Regulatory News
    News

    BIS Bulletin Examines Key Elements of Policy Response to Cyber Risk

    BIS published a bulletin, or a note, that examines the cyber threat landscape in the context of the pandemic and discusses policies to reduce risks to financial stability.

    January 14, 2021 WebPage Regulatory News
    News

    HMT Updates List of Post-Brexit Equivalence Decisions in UK

    HM Treasury, also known as HMT, has updated the table containing the list of the equivalence decisions that came into effect in UK at the end of the transition period of its withdrawal from EU.

    January 14, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6462