Featured Product

    HKMA Consults on Assessment Framework on Green and Sustainable Banking

    December 31, 2019

    HKMA issued a letter to the Hong Kong Association of Banks and the DTC Association for consultation on the common assessment framework for green and sustainable banking. HKMA had announced, in May 2019, the adoption of a three-phased approach to promote green and sustainable banking in Hong Kong. Regarding the work in phase I, with the support of a working group consisting of 22 authorized institutions, HKMA has developed the common assessment framework. The framework aims to assess the “greenness” of authorized institutions, the results of which would, in turn, facilitate authorized institutions’ setting of appropriate strategies, plans, or targets in managing climate and environment-related risks. HKMA is requesting comments by January 21, 2020.

    The framework consists of two parts (Part A and Part B) that collect information surrounding 21 sub-elements grouped under six elements:

    • Governance in terms of Board and senior management oversight and the roles and responsibilities of the board and senior management of an institution
    • Corporate planning and tools, including stress testing
    • Risk management process, including risk reporting
    • Business policies, products, and services
    • Performance and resources
    • Disclosure and communication, including plan to disclose information in accordance with recommendations of the FSB Task Force on Climate-Related Financial Disclosures

    These elements and sub-elements represent the major areas on which an institution would focus in managing climate and environment-related risks and are usually found in standards, initiatives, or recommendations of international bodies and regulators of other jurisdictions. In light of the diversity of the authorized institutions in terms of size, nature, and complexity of business, HKMA intends to initially implement the framework on selected authorized institutions. 

     

    Comment Due Date: January 21, 2020

    Keywords: Asia Pacific, Hong Kong, Banking, Sustainable Banking, Common Assessment Framework, Disclosure, Climate Related Risks, ESG, Stress Testing, Reporting, HKMA

    Featured Experts
    Related Articles
    News

    EU Amends CRD4 and CRD5 as Part of Capital Markets Recovery Package

    EU published Directive 2021/338, which amends the Markets in Financial Instruments Directive (MiFID) II and the Capital Requirements Directives (CRD 4 and 5) to facilitate recovery from the COVID-19 crisis.

    February 26, 2021 WebPage Regulatory News
    News

    EU Committee Recommends Systemic Risk Buffer of 4.5% in Norway

    The Standing Committee of the European Free Trade Association (EFTA) recommended that a systemic risk buffer level of 4.5% for domestic exposures can be considered appropriate for addressing the identified systemic risks to the stability of the financial system in Norway.

    February 25, 2021 WebPage Regulatory News
    News

    PRA Clarifies Approach to Onshoring of Credit Risk Rules for UK Banks

    In a recent statement, PRA clarified its approach to the application of certain EU regulatory technical standards and EBA guidelines on standardized and internal ratings-based approaches to credit risk, following the end of the Brexit transition.

    February 25, 2021 WebPage Regulatory News
    News

    FSB Sets Out Work Priorities for 2021

    In a recently published letter addressed to the G20 finance ministers and central bank governors, the FSB Chair Randal K. Quarles has set out the key FSB priorities for 2021.

    February 25, 2021 WebPage Regulatory News
    News

    EU Publishes Corrigendum to Revised Capital Requirements Regulation

    EU published, in the Official Journal of the European Union, a corrigendum to the revised Capital Requirements Regulation (CRR2 or Regulation 2019/876).

    February 25, 2021 WebPage Regulatory News
    News

    ESAs Issue Statement on Application of Sustainability Disclosures Rule

    ESAs published a joint supervisory statement on the effective and consistent application and on national supervision of the regulation on sustainability-related disclosures in the financial services sector (SFDR).

    February 25, 2021 WebPage Regulatory News
    News

    EC Consults on Crisis Management and Deposit Insurance Frameworks

    EC published a public consultation on the review of crisis management and deposit insurance frameworks in EU.

    February 25, 2021 WebPage Regulatory News
    News

    HKMA Enhances Loan Guarantee Scheme to Alleviate Pressure on SMEs

    HKMA announced that enhancements will be made to the Special 100% Loan Guarantee of the SME Financing Guarantee Scheme (SFGS) and the application period will be extended to December 31, 2021.

    February 24, 2021 WebPage Regulatory News
    News

    EBA Proposes Standards for Supervisory Cooperation Under IFD

    EBA launched consultations on the regulatory and implementing technical standards on cooperation and information exchange between competent authorities involved in prudential supervision of investment firms.

    February 24, 2021 WebPage Regulatory News
    News

    BoE Addresses Banks in Scope of First Resolvability Assessment

    BoE issued a letter to the CEOs of eight major UK banks that are in scope of the first Resolvability Assessment Framework (RAF) reporting and disclosure cycle.

    February 24, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6629