HKMA announced that it will consult the industry in due course on the relevant implementation proposal to give effect to the disclosure requirements of the December 2018 package by BCBS. Meanwhile, the locally incorporated authorized institutions are strongly recommended to study the relevant disclosure requirements and consider any system changes that are necessary for their implementation.
This announcement refers to the recently updated BCBS framework for Pillar 3 disclosures. The December 2018 package by BCBS includes new or revised disclosure requirements on the following:
- Corresponding capital standards set out in the Basel III post-crisis regulatory reforms, which were released in December 2017 and become effective on January 01, 2022
- Standards related to asset encumbrance, capital distribution constraints, and prudential treatment of problem assets—the requirements for which become effective at the end of December 2020.
Keywords: Asia Pacific, Hong Kong, Banking, Basel III, Disclosures, Pillar 3, BCBS, HKMA
ECB finalized the guide on assessment methodology for the internal model method for calculating exposure to counterparty credit risk (CCR) and the advanced method for own funds requirements for credit valuation adjustment (A-CVA) risk.
EBA published an Opinion addressed to EC to raise awareness about the opportunity to clarify certain issues related to the definition of credit institution in the upcoming review of the Capital Requirements Directive and Regulation (CRD and CRR).
APRA is consulting on updates to ARS 210.0, the reporting standard that sets out requirements for provision of information on liquidity and funding of an authorized deposit-taking institution.
FED released hypothetical scenarios for a second round of stress tests for banks.
PRA published updates in relation to the 2021 Supervisory Benchmarking Portfolio exercise.
FED adopted a proposal to extend for three years, with revision, the capital assessments and stress testing reports (FR Y-14A/Q/M; OMB No. 7100-0341).
HKMA revised the Supervisory Policy Manual module CR-G-14 on margin and other risk mitigation standards for non-centrally cleared over-the-counter (OTC) derivatives transactions.
EBA issued a revised list of validation rules with respect to the implementing technical standards on supervisory reporting.
EBA published its response to the call for advice of EC on ways to strengthen the EU legal framework on anti-money laundering and countering the financing of terrorism (AML/CFT).
NGFS published a paper on the overview of environmental risk analysis by financial institutions and an occasional paper on the case studies on environmental risk analysis methodologies.