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

    EBA Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models

    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.

    June 21, 2022 WebPage Regulatory News
    News

    EP Reaches Agreement on Corporate Sustainability Reporting Directive

    The European Council and the European Parliament (EP) reached a provisional political agreement on the Corporate Sustainability Reporting Directive (CSRD).

    June 21, 2022 WebPage Regulatory News
    News

    PRA Consults on Model Risk Management Principles for Banks

    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.

    June 21, 2022 WebPage Regulatory News
    News

    EC Regulation Amends Standards for Calculating Credit Risk Adjustments

    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.

    June 21, 2022 WebPage Regulatory News
    News

    BIS Hub Updates Work Program for 2022, Announces New Projects

    The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.

    June 17, 2022 WebPage Regulatory News
    News

    EIOPA Issues Cyber Underwriting Proposal, Statement on Open Insurance

    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.

    June 17, 2022 WebPage Regulatory News
    News

    US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule

    Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)

    June 16, 2022 WebPage Regulatory News
    News

    EIOPA Consults on Review of Securitization Framework in Solvency II

    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.

    June 16, 2022 WebPage Regulatory News
    News

    BIS Bulletins Discuss DeFi Lending and Aspects of Crypto-Assets

    The Bank for International Settlements (BIS) published bulletins on lending in decentralized finance (DeFi) system, on blockchain scalability and fragmentation of crypto, and on extractable value and market manipulation in crypto and decentralized finance.

    June 16, 2022 WebPage Regulatory News
    News

    UK Authorities Issue Regulatory and Reporting Updates for Banks

    The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.

    June 15, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8292