Featured Product

    HKMA Revises Supervisory Policy Module on Recovery Planning of Banks

    June 19, 2020

    HKMA revised the Supervisory Policy Manual module (RE-1) on recovery planning, which is a statutory guideline under the Banking Ordinance. The revised module incorporates the additional guidance related to recovery planning set out in an earlier HKMA circular dated July 06, 2017 (with appropriate modifications) and reflects the latest developments in related local and international standards and practices. The revised module will take effect from the date of its issuance.

    The policy module on recovery planning provides guidance to authorized institutions on the key elements of effective recovery planning and sets out the HKMA approach to, and expectations in, reviewing the recovery plans of authorized institutions. It also sets out the manner in which the powers of HKMA related to recovery planning requirements in the Banking Ordinance are to be exercised. The main objective of recovery planning is to ensure that financial institutions are well-prepared to react quickly to, and to recover from, severe stress, through their own actions.

    This module draws primarily on the FSB work on recovery and resolution planning and has taken into account the new Part XIIA of the Banking Ordinance, market developments in recovery planning standards and practices, and the HKMA experiences in implementing recovery planning requirements thus far. This module should be read in conjunction with the Banking Ordinance and other relevant modules of the Supervisory Policy Manual, such as CG-1 on corporate governance, IC-1 on risk management framework, IC-5 on stress testing, and the various modules on the effective management of inherent risks of authorized institutions. In case of any discrepancy between the Banking Ordinance and this module, the Banking Ordinance prevails. The guidance set out in this module applies to all authorized institutions in a proportionate manner, having regard to their size, structure, business mix, and the systemic risks associated with their activities. 

     

    Keywords: Asia Pacific, Hong Kong, Banking, Recovery Planning, Banking Ordinance, Supervisory Policy Manual, HKMA

    Related Articles
    News

    PRA and FPC Finalize Changes to Leverage Ratio Framework in UK

    The Prudential Regulation Authority (PRA) published the final policy statement PS21/21 on the leverage ratio framework in the UK. PS21/21, which sets out the final policy of both the Financial Policy Committee (FPC) and PRA

    October 08, 2021 WebPage Regulatory News
    News

    CFPB Proposes Rule on Small Business Lending Data Collection

    The Consumer Financial Protection Bureau (CFPB) proposed to amend Regulation B to implement changes to the Equal Credit Opportunity Act (ECOA) under Section 1071 of the Dodd-Frank Act.

    October 08, 2021 WebPage Regulatory News
    News

    PRA Decides to Maintain O-SII Buffers for Another Year

    The Prudential Regulation Authority (PRA) decided to maintain, at the 2019 levels, the buffer rates for the Other Systemically Important Institutions (O-SII) for another year, with no new rates to be set until December 2023.

    October 08, 2021 WebPage Regulatory News
    News

    FSB Report Assesses Implementation of Recommendations on Stablecoins

    The Financial Stability Board (FSB) published a progress report on implementation of its high-level recommendations for the regulation, supervision, and oversight of global stablecoin arrangements.

    October 07, 2021 WebPage Regulatory News
    News

    APRA Updates Loan Serviceability Expectations for Home Lending

    In a letter to the authorized deposit taking institutions, the Australian Prudential Regulation Authority (APRA) announced an increase in the minimum interest rate buffer it expects banks to use when assessing the serviceability of home loan applications.

    October 06, 2021 WebPage Regulatory News
    News

    CPMI and IOSCO Consult on Guidance on Stablecoin Arrangements

    The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) are consulting on the preliminary guidance that clarifies that stablecoin arrangements should observe international standards for payment, clearing, and settlement systems.

    October 06, 2021 WebPage Regulatory News
    News

    EBA and EIOPA Set Out Work Priorities for 2022

    The European Banking Authority (EBA) and the European Insurance and Occupational Pensions Authority (EIOPA) have set out their respective work priorities for 2022.

    October 05, 2021 WebPage Regulatory News
    News

    MFSA Issues Reporting Updates and Guidance for Banks

    The Malta Financial Services Authority (MFSA) updated the guidelines on supervisory reporting requirements under the reporting framework 3.0, in addition to the reporting module on leverage under the common reporting (COREP) framework.

    October 05, 2021 WebPage Regulatory News
    News

    EC Publishes Decision on List of Equivalent Third Countries Under CRR

    The European Commission (EC) published the Implementing Decision 2021/1753 on the equivalence of supervisory and regulatory requirements of certain third countries and territories for the purposes of the treatment of exposures, in accordance with the Capital Requirements Regulation or CRR (575/2013).

    October 04, 2021 WebPage Regulatory News
    News

    EC Rule on Contractual Recognition of Write-Down and Conversion Powers

    EC published the Implementing Regulation 2021/1751, which lays down implementing technical standards on uniform formats and templates for notification of determination of the impracticability of including contractual recognition of write-down and conversion powers.

    October 04, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7552