HKMA Announcement on Timeline for Implementation of Market Risk Rules
HKMA announced that it will closely monitor the progress across major jurisdictions on the implementation of market risk capital requirements and finalize the timeline for Hong Kong when there is more clarity on the implementation status internationally. In a letter addressed to the Chief Executives of locally incorporated authorized institutions, HKMA also announced that, early next year, it will conduct a local quantitative impact study (QIS) on locally incorporated authorized institutions to assess the impact of the new standards for Hong Kong.
According to the latest BCBS timetable, banks would be required to calculate their market risk based on the new standards from January 01, 2022. However, the regulator understands the concern of the industry about the challenges arising from different implementation timelines across major jurisdictions. To address this, HKMA will closely monitor the progress in these jurisdictions and finalize timeline for Hong Kong when there is more clarity on the implementation status internationally. In the meantime, as a transitional arrangement, locally incorporated authorized institutions will be required to implement the new market risk framework in Hong Kong for reporting purposes only by January 01, 2022.
Keywords: Asia Pacific, Hong Kong, Banking, Market Risk, Regulatory Capital, Basel III, BCBS, HKMA
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Previous Article
APRA Raises Capital Requirements for Westpac, Launches InvestigationRelated Articles
BIS and BoE Launch Innovation Hub in London
BIS and BoE launched the BIS Innovation Hub Center in London, which is the fourth new Innovation Hub Centre to be opened in the past two years.
ESRB Recommends Reciprocation of Certain Macroprudential Measures
ESRB published recommendations on the reciprocation of macro-prudential measures in Belgium, France, Luxembourg, Norway, and Sweden.
EC Publishes Regulation on Key Aspects of Implementation of SA-CCR
EC published the Delegated Regulation 2021/931, which supplements the Capital Requirements Regulation (CRR or Regulation 575/2013) with regard to the regulatory technical standards specifying the method for identifying derivative transactions with one or more than one material risk driver.
BCBS Consults on Prudential Treatment of Cryptoasset Exposures
BCBS is consulting on preliminary proposals for the prudential treatment of cryptoasset exposures of banks.
EBA Revises List of Validation Rules for Reporting
EBA issued a revised list of validation rules under the implementing technical standards on supervisory reporting.
Banking Authorities and Private Sector Collaborate on Wholesale CBDC
BIS Innovation Hub, BDF, and SNB announced that, together with a private-sector consortium led by Accenture, they will conduct an experiment using wholesale central bank digital currency (wCBDC) for cross-border settlement.
ESAs Publish Amended Implementing Standards on Mapping of ECAIs
ESAs published two amended implementing technical standards on the mapping of credit assessments of External Credit Assessment Institutions (ECAIs).
EBA Revises Guidelines on Major Incident Reporting Under PSD2
EBA published revised guidelines on major incident reporting under the Payment Service Directive (PSD2).
BCBS Updates Supporting Information for G-SIB Assessment in June 2021
BCBS updated the year-end and annual average exchange rates in context of the global systemically important bank (G-SIB) assessment exercise.
HKMA Revises Implementation Timeline for Basel Standards
HKMA issued a circular informing the industry about its intention to revise the target effective dates for the revised frameworks on credit risk, operational risk, output floor, leverage ratio, market risk, and credit valuation adjustment risk.
