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

    EBA Updates List of Validation Rules for Reporting by Banks

    EBA issued a revised list of validation rules with respect to the implementing technical standards on supervisory reporting.

    September 10, 2020 WebPage Regulatory News
    News

    EBA Responds to EC Call for Advice to Strengthen AML/CFT Framework

    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).

    September 10, 2020 WebPage Regulatory News
    News

    NGFS Advocates Environmental Risk Analysis for Financial Sector

    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.

    September 10, 2020 WebPage Regulatory News
    News

    MAS Issues Guidelines to Promote Senior Management Accountability

    MAS published the guidelines on individual accountability and conduct at financial institutions.

    September 10, 2020 WebPage Regulatory News
    News

    APRA Formalizes Capital Treatment and Reporting of COVID-19 Loans

    APRA published final versions of the prudential standard APS 220 on credit quality and the reporting standard ARS 923.2 on repayment deferrals.

    September 09, 2020 WebPage Regulatory News
    News

    SRB Chair Discusses Path to Harmonized Liquidation Regime for Banks

    SRB published two articles, with one article discussing the framework in place to safeguard financial stability amid crisis and the other article outlining the path to a harmonized and predictable liquidation regime.

    September 09, 2020 WebPage Regulatory News
    News

    FSB Workshop Discusses Preliminary Findings of Too-Big-To-Fail Reforms

    FSB hosted a virtual workshop as part of the consultation process for its evaluation of the too-big-to-fail reforms.

    September 09, 2020 WebPage Regulatory News
    News

    ECB Updates List of Supervised Entities in EU in September 2020

    ECB updated the list of supervised entities in EU, with the number of significant supervised entities being 115.

    September 08, 2020 WebPage Regulatory News
    News

    OSFI Identifies Focus Areas to Strengthen Third-Party Risk Management

    OSFI published the key findings of a study on third-party risk management.

    September 08, 2020 WebPage Regulatory News
    News

    FSB Extends Implementation Timeline for Framework on SFTs

    FSB is extending the implementation timeline, by one year, for the minimum haircut standards for non-centrally cleared securities financing transactions or SFTs.

    September 07, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5796