Featured Product

    HKMA Urges Local Banks to Start Working on FRTB Implementation

    January 17, 2019

    HKMA announced that it plans to issue a consultation paper on the new market risk standard in the second quarter of 2019. HKMA will also assess impact of the updated FRTB for Hong Kong, based on local data in due course. For local implementation of the market risk standard, HKMA expects to closely follow the BCBS standard. Given the size and complexity of the new market risk standard, HKMA urges all locally incorporated authorized institutions to start working on their firm-specific implementation of the market risk standard, based on the published BCBS framework, in 2019.

    BCBS had issued its new minimum capital requirements for market risk (as they resulted from the fundamental review of the trading book or FRTB) on January 14, 2019. These newly issued BCBS requirements update an earlier version of the framework that was originally published in January 2016. The revised FRTB includes a set of amendments to address issues that have been identified through input from a wide spectrum of stakeholders since the publication of its original 2016 version. The revised standard on market risk takes into account extensive feedback received on a consultative document issued by BCBS in March 2018 and it is calibrated based on the most recent set of the BCBS quantitative impact study data. The revised BCBS standard comes into effect on January 01, 2022. HKMA had earlier communicated that it will align the local implementation of the new market risk standard with the latest BCBS timetable—that is, January 01, 2022.

    Keywords: Asia Pacific, Hong Kong, Banking, FRTB, Market Risk, Basel III, BCBS, HKMA

    Featured Experts
    Related Articles
    News

    APRA Updates Validation and Derivation Rules in September 2020

    APRA updated the lists of the Direct to APRA (D2A) validation and derivation rules for authorized deposit-taking institutions, insurers, and superannuation entities.

    September 24, 2020 WebPage Regulatory News
    News

    EC Proposes Frameworks for Crypto-Assets and Operational Resilience

    EC adopted a package that includes the digital finance and retail payments strategies and the legislative proposals for regulatory frameworks on crypto-assets and digital operational resilience.

    September 24, 2020 WebPage Regulatory News
    News

    ECB Publishes Opinion on Proposals to Amend Securitization Framework

    ECB published an opinion (CON/2020/22) on proposals for regulations amending the securitization framework of EU, in response to the COVID-19 pandemic.

    September 24, 2020 WebPage Regulatory News
    News

    FCA Consults on Regulation of International Firms in UK

    FCA is consulting on its approach to the authorization and supervision of international firms operating in UK.

    September 23, 2020 WebPage Regulatory News
    News

    MAS Amends Notice on Capital Adequacy Requirements of Banks

    MAS published amendments to Notice 637 on the risk-based capital adequacy requirements for reporting banks incorporated in Singapore.

    September 23, 2020 WebPage Regulatory News
    News

    FCA to Begin to Move Firms to New Data Collection Platform RegData

    FCA announced that it will move firms to RegData from Gabriel in the coming months in stages, based on the reporting requirements of firms.

    September 23, 2020 WebPage Regulatory News
    News

    ISDA Expects IBOR Fallbacks to be Effective by End of January 2021

    ISDA issued a letter to regulators to flag that it now expects the supplement to the 2006 ISDA Definitions and the Interbank Offered Rate (IBOR) Fallbacks Protocol to be effective around mid- to late-January 2021.

    September 23, 2020 WebPage Regulatory News
    News

    APRA Reviews Repayment Deferral Plans, Identifies Best Practices

    APRA has concluded its review of the comprehensive plans of authorized deposit-taking institutions for the assessment and management of loans with repayment deferrals.

    September 22, 2020 WebPage Regulatory News
    News

    ESAs Assess Risks to Financial Sector After COVID-19 Outbreak

    ESAs (EBA, EIOPA, and ESMA) published the first joint report that assesses risks in the financial sector since the outbreak of the COVID-19 pandemic.

    September 22, 2020 WebPage Regulatory News
    News

    BoE Confirms Withdrawal of COVID Corporate Financing Facility

    BoE and HM Treasury confirmed that the COVID Corporate Financing Facility (CCFF) will close for new purchases of commercial paper, with effect from March 23, 2021.

    September 22, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5836