HKMA Finalizes Banking Amendment Ordinance 2018
HKMA notified that the Banking (Amendment) Ordinance 2018 (BAO 2018) has been published in the Gazette and was passed by the Legislative Council on January 24, 2018. The main purpose of the BAO 2018 is to amend the Banking Ordinance (BO) to bring the country’s regulatory regime up-to-date with the latest international standards on large exposure limits and recovery planning.
BAO 2018 also repeals the Banking (Specification of Public Sector Entity in Hong Kong) Notice (Cap. 155 sub. leg. O), which is no longer required, following the repeal of the Fourth Schedule to the BO under the Banking (Amendment) Ordinance 2012. The provisions of the BAO 2018 will come into operation in phases. The provisions related to recovery planning will take effect from February 02, 2018. Additionally, HKMA will update its supervisory policy manual module RE-1 on Recovery Planning accordingly to reflect the new legislative changes. Regarding exposure limits, the plan is to put in place new rules on equity exposures to replace BO section 87 as soon as practicable within 2018 and the rest of the new rules by January 01, 2019 to align with the date set by BCBS to implement the revised large exposures framework. HKMA will duly consult the industry in the rulemaking process.
Keywords: Asia Pacific, Hong Kong, Banking, Large Exposures, Recovery Planning, BAO 2018, HKMA
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