Featured Product

    HKMA Announces Deferral of Implementation of Final Basel III Package

    March 30, 2020

    HKMA announced its plans to defer the implementation of final Basel III package, inline with the timeline announced by the Group of Central Bank Governors and Heads of Supervision (GHOS). On March 27, 2020, BCBS had announced the deferral of the implementation date of the final Basel III standards by one year, to January 01, 2023. BCBS had announced this deferral as part of the ongoing effort by supervisors worldwide to address challenges to the financial system that have been brought about by COVID-19.

    The target implementation of the revised frameworks on credit risk, operational risk, output floor, and leverage ratio, along with their associated disclosure requirements, is being deferred by one year, to January 01, 2023. The locally incorporated authorized institutions will be required to implement the new market risk framework for reporting purposes by January 01, 2023. The local implementation of the actual capital requirements based on the new framework will be no earlier than January 01, 2023. Its timing will take into account the implementation progress observed in major jurisdictions. The local implementation of revised credit valuation adjustment (CVA) framework will be aligned with the revised market risk framework and follow the timelines used there both for reporting and the implementation of the CVA capital requirements.

    The supervisory initiatives are in line with the aims of recent actions taken by HKMA to ameliorate the impact of COVID-19 on Hong Kong’s economy and on the local banking sector. For instance, HKMA encouraged authorized institutions to introduce measures to help tide their customers over this difficult time through forums such as the Banking Sector SME Lending Coordination Mechanism and has provided guidance on the supervisory treatment of these relief measures to ensure that they are rolled out expeditiously. HKMA is also considering the implications of COVID-19 for the authorized institutions' application of the expected credit loss provisioning.

     

    Keywords: Asia Pacific, Hong Kong, Banking, Basel III, GHOS, Market Risk, COVID 19, CVA, Credit Risk, Operational Risk, HKMA

    Featured Experts
    Related Articles
    News

    HKMA Announces Repayment Deferment Under Payment Holiday Scheme

    HKMA, together with the Banking Sector Small and Medium-Size Enterprise (SME) Lending Coordination Mechanism, announced a ninety-day repayment deferment for trade facilities under the Pre-approved Principal Payment Holiday Scheme.

    August 05, 2020 WebPage Regulatory News
    News

    ESRB Paper Presents Alternative Approach to EBA Stress Test Proposal

    The Advisory Scientific Committee of ESRB published a response, in the form of an Insights Paper, to the EBA proposals for reforms to the stress testing framework in EU.

    August 05, 2020 WebPage Regulatory News
    News

    MAS Announces Key Initiatives to Support Adoption of SORA

    MAS announced several initiatives to support adoption of the Singapore Overnight Rate Average (SORA), which is administered by MAS.

    August 05, 2020 WebPage Regulatory News
    News

    BoE Updates Template and Definitions for Form ER

    BoE updated the reporting template for Form ER as well as the Form ER definitions, which contain guidance on the methodology to be used in calculating annualized interest rates.

    August 05, 2020 WebPage Regulatory News
    News

    PRA to Extend Temporary High Balance Coverage Amid COVID Crisis

    PRA published the policy statement PS19/20 on the final policy for extending coverage under the Financial Services Compensation Scheme (FSCS) for Temporary High Balance.

    August 04, 2020 WebPage Regulatory News
    News

    EBA Publishes Standards on Disclosure and Reporting of MREL and TLAC

    EBA published the final draft implementing technical standards for disclosures and reporting on the minimum requirements for own funds and eligible liabilities (MREL) and the total loss-absorbing capacity (TLAC) requirements in EU.

    August 03, 2020 WebPage Regulatory News
    News

    EBA Releases Erratum for Phase 2 Package on Reporting Framework 2.10

    EBA published an erratum for the phase 2 of technical package on the reporting framework 2.10.

    August 03, 2020 WebPage Regulatory News
    News

    EC Sets Out Updated Technical Information for Solvency II Calculations

    EC published the Implementing Regulation 2020/1145, which lays down technical information for calculation of technical provisions and basic own funds.

    August 03, 2020 WebPage Regulatory News
    News

    US Agencies Issue Statement on Additional COVID-19 Loan Accommodations

    FFIEC, on behalf of its members that include US Agencies such as CFPB, FDIC, FED, NCUA, and OCC, issued a joint statement that sets out prudent risk management and consumer protection principles for financial institutions to consider while working with borrowers.

    August 03, 2020 WebPage Regulatory News
    News

    PRA Consults on Implementation of Certain Provisions of CRD5

    PRA, via the consultation paper CP12/20, proposed changes to its rules, supervisory statements, and statements of policy to implement certain elements of the Capital Requirements Directive (CRD5).

    July 31, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5622