HKMA published a circular on the third “wave” of implementation of the Supervisory Policy Manual module RE-1 “Recovery Planning” (SPM RE-1). In this circular, HKMA is providing further guidance on recovery planning to the authorized institutions covered in this wave. The third “wave” of implementation of SPM RE-1 will cover overseas-incorporated authorized institutions with branch operations in Hong Kong and smaller, less complex locally incorporated authorized institutions.
As stated in SPM RE-1, all authorized institutions are expected to develop and maintain a recovery plan commensurate with the nature, scale, significance, and complexity of their operations. To date, the majority of locally incorporated licensed banks have prepared recovery plans and submitted their plans to the HKMA via two separate “waves.” Authorized institutions in this latest wave will be individually notified of the timeline for submitting recovery plans and related information to the relevant Banking Supervision Department case teams. To facilitate the development of recovery plans, a set of further guidance is provided in the Annex to this circular. This further guidance should be read in conjunction with SPM RE-1.
Keywords: Asia Pacific, HKMA, Hong Kong, Banking, Recovery Planning, SPM Re-1