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
Pierre-Etienne Chabanel
Brings expertise in technology and software solutions around banking regulation, whether deployed on-premises or in the cloud.
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.
Related Articles
|
News
HKMA Announces Liquidity Measures in Response to COVID-19 OutbreakHKMA issued a circular on liquidity measures that HKMA has taken or plans to take in response to COVID-19 outbreak.
April 03, 2020
WebPage
Regulatory News
|
|
News
BaFin Lowers Countercyclical Capital Buffer Amid COVID-19 OutbreakBaFin published a general order to lower the countercyclical capital buffer (CCyB) from 0.25% to 0% as of April 01, 2020.
April 03, 2020
WebPage
Regulatory News
|
|
News
ESMA Updates Risk Assessment in Light of COVID-19ESMA updated its risk assessment to account for the impact of the COVID-19 pandemic.
April 02, 2020
WebPage
Regulatory News
|
|
News
FSB Outlines and Reprioritizes Its Work to Address COVID-19 RisksFSB published a statement that outlines its work toward addressing the financial stability risks posed by COVID-19, along with the reprioritization of its work program for 2020.
April 02, 2020
WebPage
Regulatory News
|
|
News
EIOPA Announces Measures to Address the Impact of COVID-19Due to the outbreak of COVID-19, EIOPA is re-prioritizing and alleviating the burden by extending the deadlines or delaying projects where input from national competent authorities and/or industry is foreseen.
April 02, 2020
WebPage
Regulatory News
|
|
News
EBA Guidelines on Use of Payment Moratoria to Address Liquidity IssuesEBA published detailed guidance on the treatment of legislative and non-legislative moratoria on loan repayments to be applied before June 30, 2020, in light of the COVID-19 crisis.
April 02, 2020
WebPage
Regulatory News
|
|
News
PRA Outlines Approach to Reporting and Disclosures Amid COVID-19PRA published a statement to outline its approach to regulatory reporting and Pillar 3 disclosures for UK banks, building societies, designated investment firms, and credit unions.
April 02, 2020
WebPage
Regulatory News
|
|
News
PRA Finalizes Certain Modeling Issues for Solvency II Internal ModelsPRA published a statement (PS9/20) that sets out the final policy on modeling of income-producing real estate loans and internal credit assessment for illiquid, unrated assets within the Solvency II internal models.
April 02, 2020
WebPage
Regulatory News
|
|
News
EIOPA Issues Statement on Mitigating Impact of COVID-19 OutbreakEIOPA issued a statement to insurers and intermediaries, urging them to take steps to mitigate the impact of COVID-19 on consumers.
April 01, 2020
WebPage
Regulatory News
|
|
News
APRA on Changes to Reporting Obligations for Banks Due to COVID-19APRA, in collaboration with the Reserve Bank of Australia (RBA) and the Australian Bureau of Statistics (ABS), published a letter outlining temporary changes in reporting obligations for authorized deposit-taking institutions and registered financial corporations, in response to COVID-19.
April 01, 2020
WebPage
Regulatory News
|
