HKMA issued the revised version (Version 3) of the Supervisory Policy Manual module LM-1 on the regulatory framework for supervision of liquidity risk, as a statutory guideline under the Banking Ordinance. The revised module incorporates regulatory requirements consequential to the commencement of the Banking (Liquidity) (Amendment) Rules 2019 and reflects latest developments in the Basel III liquidity standards.
The revised policy module is a statutory guideline on the regulatory framework adopted by HKMA for supervising liquidity risk at authorized institutions. It offers guidelines with respect to liquidity-related disclosures and sets out the approach of HKMA in assessing authorized institutions’ compliance with the statutory liquidity requirements, including the liquidity coverage ratio (LCR), the liquidity maintenance ratio, the net stable funding ratio (NSFR), and the core funding ratio. In its risk-based supervision, HKMA conducts offsite analysis of the liquidity positions of an authorized institution. The information required for analysis is primarily obtained through regular submissions of these returns:
- Return on Liquidity Position of an Authorized Institution (MA(BS)1E)
- Return on Stable Funding Position of an Authorized Institution (MA(BS)26)
- Return on Intraday Liquidity Position of an Authorized Institution (MA(BS)22)
- Return on Liquidity Monitoring Tools (MA(BS)23)
- Return on Selected Data for Liquidity Stress-Testing (MA(BS)18)
This revised module should be read in conjunction with the the Banking (Liquidity) Rules, the Code of Practice under §97M of the Banking Ordinance, the Completion Instructions for Returns MA(BS)1E and MA(BS)26, LM-2, and other relevant supervisory documents that may be issued by HKMA.
Keywords: Asia Pacific, Hong Kong, Banking, Liquidity Risk, LCR, NSFR, Supervisory Policy Manual, Banking Liquidity Rules, Reporting, Disclosures, Basel, HKMA
The Bank for International Settlements (BIS) published a paper that studies impact of fintech lending on credit access for small businesses in U.S.
The Prudential Regulation Authority (PRA) issued the policy statement PS8/22 to amend the Own Funds and Eligible Liabilities (CRR) Part of the PRA Rulebook and update the supervisory statement SS7/13 titled "Definition of capital (CRR firms).
The European Banking Authority (EBA) launched the EU-wide transparency exercise for 2022, with results of the exercise expected to be published at the beginning of December, along with the annual Risk Assessment Report.
The Single Resolution Board (SRB) welcomed the adoption of the review of the Capital Requirements Regulation, or CRR, also known as the "CRR quick-fix."
The European Commission (EC) recently adopted the Delegated Regulation 2022/1622, which sets out the regulatory technical standards to specify the countries that constitute advanced economies for the purpose of specifying risk-weights for the sensitivities to equity.
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.
The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.
The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).
The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.
The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.