HKMA unveiled its new strategy—“Fintech 2025”—for driving fintech development in Hong Kong. The HKMA Chief Executive Eddie Yue outlined the new fintech strategy, which aims to encourage the financial sector to adopt technology comprehensively by 2025 as well as to promote the provision of fair and efficient financial services for the benefit of Hong Kong citizens and the economy. Additional details of the initiatives under the strategy will be announced by HKMA in due course.
The five focus areas put forward in the strategy are:
All banks going fintech. HKMA will continue to promote the all-round adoption of fintech by banks in Hong Kong and encourage them to fully digitalize their operations, from front-end to back-end. To take this forward, HKMA will roll out a Tech Baseline Assessment to take stock of banks’ current and planned adoption of fintech in the coming years and to identify fintech business areas or specific technology types that may be underdeveloped and would benefit from HKMA support. HKMA will issue further supervisory guidance to facilitate the uptake of novel technologies and continue to “walk the talk” by digitalizing supervision of banks through the use of advanced technologies.
Future-proofing Hong Kong for central bank digital currencies. HKMA will strengthen its research work to increase Hong Kong’s readiness in issuing central bank digital currencies at both wholesale and retail levels.
Creating the next-generation data infrastructure. HKMA will take the lead in enhancing the existing data infrastructure and building new one, including commercial data interchange, digital corporate identity, and distributed ledger technology (DLT)-based credit data sharing platform, to facilitate consent-based data sharing.
Expanding the fintech-savvy workforce. HKMA aims to collaborate with various strategic partners to groom all-round fintech talent, both students and practitioners, through various initiatives, including developing fintech-specific training programs and qualifications as well as promoting joint projects between the industry and the academia.
Nurturing the ecosystem with funding and policies. A new Fintech Cross-Agency Co-ordination Group will be established by HKMA and various industry key players to formulate supportive policies for the Hong Kong fintech ecosystem. In addition, HKMA will continue the preparatory work for the Hong Kong Growth Portfolio, which seeks to reinforce Hong Kong’s status as a financial, commercial and innovation center. It will also enhance its Fintech Supervisory Sandbox and is exploring with the Innovation and Technology Commission the possibility of providing funding support to qualified fintech projects.
Keywords: Asia Pacific, Hong Kong, Banking, Fintech, CBDC, Suptech, Regtech, Strategic Priorities, DLT, HKMA
The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.
The European Council and the European Parliament (EP) reached a provisional political agreement on the Corporate Sustainability Reporting Directive (CSRD).
The Prudential Regulation Authority (PRA) launched a consultation (CP6/22) that sets out proposal for a new Supervisory Statement on expectations for management of model risk by banks.
The European Commission (EC) published the Delegated Regulation 2022/954, which amends regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.
The Hong Kong Monetary Authority (HKMA) announced that the Green and Sustainable Finance (GSF) Cross-Agency Steering Group has launched the information and data repositories and outlined the progress made in advancing the development of green and sustainable finance in Hong Kong.
The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.
The European Insurance and Occupational Pensions Authority (EIOPA) published two consultation papers—one on the supervisory statement on exclusions related to systemic events and the other on the supervisory statement on the management of non-affirmative cyber exposures.
The Network for Greening the Financial System (NGFS) published a report that explores the feasibility of integrating the G-Cubed general equilibrium model into the NGFS suite of models.
Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)
The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.