HKMA Publishes List of Systemically Important Banks in Hong Kong
HKMA published the list of institutions that have been designated as domestic systemically important authorized institutions, or D-SIBs, as of January 01, 2020, along with the associated Higher Loss Absorbency (HLA) requirements for these institutions. The list of authorized institutions designated as D-SIBs remains unchanged compared to the list of D-SIBs published on December 21, 2018. However, the HLA requirement for Standard Chartered Bank (Hong Kong) Limited has been increased from 1.0% to 1.5% while the HLA requirement for Hang Seng Bank Limited has been reduced from 1.5% to 1.0%.
The D-SIBs in bucket 1, which have an HLA requirement of 1%, are Bank of East Asia Limited, Hang Seng Bank Limited, and Industrial and Commercial Bank of China (Asia) Limited. The D-SIBs in bucket 2, which have an HLA requirement of 1.5%, are Bank of China (Hong Kong) Limited and Standard Chartered Bank (Hong Kong) Limited. Additionally, HSBC Limited has been included in bucket 4, with an HLA requirement of 2.5%
Under the D-SIB framework, each authorized institution that is designated as a D-SIB will be required to include a HLA requirement into the calculation of its regulatory capital buffers within a period of 12 months after formal notification of the designation. The HLA requirement applicable to a D-SIB ranges between 1.0% and 3.5% (depending on the assessed level of systemic importance of a D-SIB).
Keywords: Asia Pacific, Hong Kong, Banking, Banking Capital Rules, HLA, D-SIBs, Systemic Risk, Basel III, BCBS, HKMA
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Dr. Samuel W. Malone
Sam leads the quantitative research team within the CreditEdge™ research group. In this role, he develops novel risk and forecasting solutions for financial institutions while providing thought leadership on related trends in global financial markets.
Dieter Van der Stock
IFRS subject matter expert; accounting authority; risk management specialist
Previous Article
HKMA Updates FAQs on IRRBB Framework in November 2019Related Articles
|
News
APRA Plans to Assess Climate Risks and Develop Prudential GuidanceAPRA published a letter that outlines its plans to undertake a climate change vulnerability assessment and develop a prudential practice guide focused on climate-related financial risks.
February 24, 2020
WebPage
Regulatory News
|
|
News
APRA to Transition to Annual Stress Testing of Large Banks in 2020APRA published key findings of the stress testing assessment conducted on authorized deposit-taking institutions.
February 21, 2020
WebPage
Regulatory News
|
|
News
IAIS Statement on Monitoring Period of Insurance Capital StandardIAIS published a statement from its Secretary General Jonathan Dixon on the Insurance Capital Standard (ICS) monitoring period.
February 21, 2020
WebPage
Regulatory News
|
|
News
EC Consults on Review of Non-Financial Reporting DirectiveEC is launched a consultation on the review of the Non-Financial Reporting Directive or NFRD (Directive 2014/95/EU, as part of its strategy to strengthen sustainable investment in Europe.
February 20, 2020
WebPage
Regulatory News
|
|
News
EIOPA Consults on Standards for Supervisory Reporting Under PEPP RuleEIOPA is consulting on the implementing technical standards for supervisory reporting and cooperation, as mandated by the Pan-European Personal Pension Product (PEPP) Regulation (Regulation 2019/1238).
February 20, 2020
WebPage
Regulatory News
|
|
News
ECB Report on Transfer of Liquidity from EONIA Products to €STRECB published a report on the transfer of liquidity from the cash and derivatives products of the Euro Overnight Index Average (EONIA) to the Euro Short-Term Rate (€STR).
February 19, 2020
WebPage
Regulatory News
|
|
News
ESRB Publishes Report on Systemic CyberattacksESRB published a report that explores systemic implications of cyber incidents, such as cyberattacks.
February 19, 2020
WebPage
Regulatory News
|
|
News
FSB Chair Sets Out Key Deliverables for G20 Presidency of Saudi ArabiaFSB published a letter from the Chair Randal K. Quarles to the G20 finance ministers and Central Bank governors ahead of the meetings in Riyadh on February 22-23.
February 19, 2020
WebPage
Regulatory News
|
|
News
CFTC Proposes Rules on Derivative Position Limits and Swap ExecutionCFTC approved a proposed rule on position limits for derivatives and a proposed rule amending requirements for certain Swap Execution Facilities and real-time reporting.
February 19, 2020
WebPage
Regulatory News
|
|
News
BIS Appoints Heads of Innovation Hubs in Singapore and SwitzerlandBIS announced key personnel appointments to the Innovation Hubs in Singapore and Switzerland.
February 19, 2020
WebPage
Regulatory News
|
