July 26, 2018

HKMA is extending the implementation date of the amended Banking (Exposure Limits) Rules (BELR) by six months to July 01, 2019. In addition to the local exposure limits currently comprised under Part XV of the Banking Ordinance, these amendments to the BELR cover local implementation of the supervisory framework for measuring and controlling large exposures, which the Basel Committee issued in April 2014.

The industry associations have been informed about, and consulted on, the detailed proposals to amend the BELR on May 28, 2018. However, HKMA anticipates the negative vetting of the amendments by the Legislative Council to be completed only around the end of this year. By then HKMA also expects to have published the announced details on the grouping of linked counterparties, including operational guidance for the identification of links between counterparties due to economic dependence. In light of the tight implementation timeline and some legitimate concerns that were articulated by industry representatives, HKMA has extended the implementation timeline by six months.

Effective Date: July 01, 2019

Keywords: Asia Pacific, Hong Kong, Banking, Large Exposures, BELR, Implementation Timeline, Basel III, HKMA

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