HKMA reviewed the work done in 2018 and published its priorities for the coming year. The priorities for 2019 are in the areas of implementation of Basel III reform package, suptech as part of the HKMA Digitalization Program, operational resilience and technology risk management, money laundering/terrorist financing risk management, misconduct risk management, liquidity and market risk management, and credit risk management.
The focus areas in credit risk management include small and medium enterprise lending, lending to large corporates, counterparty credit risk management, and loan classification and provisioning. In terms of liquidity and risk management, the HKMA focus will be on assessing—via internal liquidity stress test and contingency funding management—the capability of banks to cope with liquidity shocks and reviewing risk management practices of banks for algorithmic trading. In terms of technology risk management, the focus will be on cyber resilience and recovery, supervision of virtual banks, regtech development, and implementation of Open API.
Keywords: Asia Pacific, Hong Kong, Banking, Work Priorities, Suptech, Regtech, Credit Risk, Market Risk, HKMA
EC published Regulation 2021/25 that addresses amendments related to the financial reporting consequences of replacement of the existing interest rate benchmarks with alternative reference rates.
BIS published a bulletin, or a note, that examines the cyber threat landscape in the context of the pandemic and discusses policies to reduce risks to financial stability.
HM Treasury, also known as HMT, has updated the table containing the list of the equivalence decisions that came into effect in UK at the end of the transition period of its withdrawal from EU.
EBA published an erratum for technical package on phase 1 of the reporting framework 3.0.
APRA updated a frequently asked question (FAQ), for authorized deposit-taking institutions, on the measurement of credit risk weighted assets.
EBA published the quarterly risk dashboard, along with the results of the Risk Assessment Questionnaire survey among 60 banks and 15 market analysts.
ECB concluded the public consultation on the introduction of a digital euro in EU.
ECB published a guide that sets out the supervisory approach to consolidation in the banking sector.
The SRB Chair Elke König published an article setting out work priorities for 2021.
FDIC has selected 11 technology companies—including BearingPoint, Fed Reporter, Inc, and S&P Global Market Intelligence, LLC—for inclusion in the third and final phase of the rapid prototyping competition.