Featured Product

    HKMA Introduces Key Measures on Sustainable Banking and Green Finance

    May 07, 2019

    HKMA announced plans to introduce three sets of measures to support and promote the green finance development in Hong Kong. HKMA expects to collaborate with the industry and other stakeholders to combat climate change risks and develop green finance at the HKMA Green Finance Forum. The three measures involve green and sustainable banking, responsible investment, and the establishment of the Center of Green Finance (CGF). HKMA Chief Executive Norman TL Chan also spoke about green finance development in Hong Kong at the HKMA Green Finance Forum.

    Green and Sustainable Banking. The green and sustainable banking will have three phases. The first phase involves developing a common framework to assess the “Greenness Baseline” of individual banks. HKMA will also collaborate with relevant international bodies to provide technical support to banks in Hong Kong to better understand the green principles and methodology in undertaking the baseline assessment. In the second phase, HKMA will engage the industry and other relevant stakeholders in a consultation on the supervisory expectation or requirement on green and sustainable banking, with a view to set tangible deliverables for promoting the green and sustainable developments of the Hong Kong banking industry. In the final phase, HKMA will implement, monitor, and evaluate the progress of banks. 

    Responsible Investment. HKMA will adopt a principle that priority can be given to Green and Environmental, Social, and Governance (ESG) investments if the long-term return is comparable to other investments on a risk-adjusted basis. To support Responsible Investment, HKMA has already incorporated ESG factors in its credit risk analysis of bond investment. It will further grow the Exchange Fund’s green bond portfolio, through direct investment in green projects or investment in green bond funds. HKMA will participate in ESG-themed public equities investments through external managers in passive or active mandates targeting ESG benchmark index. In addition, HKMA will accord green accreditation as a predominant factor in investment in the real estate portfolio and will consider an appropriate framework for disclosing information on the Exchange Fund’s Green and ESG investing efforts.

    Center for Green Finance (CGF). HKMA will establish the CGF under HKMA Infrastructure Financing Facilitation Office (IFFO), which will serve as a platform for technical support and experience-sharing for the green development of the Hong Kong banking and finance industry. CGF and the International Finance Corporation (IFC) will co-organize the next climate business forum in Hong Kong in early 2020. The forum is IFC’s flagship event to discuss trends and business opportunities on climate change and sustainability.


    Keywords: Asia Pacific, Hong Kong, Banking, Sustainable Banking, ESG, Climate Change Risks, Center for Green Finance, HKMA

    Related Articles
    News

    APRA Publishes Results of Climate Risk Self-Assessment Survey

    The Australian Prudential Regulation Authority (APRA) has published the findings of its latest climate risk self-assessment survey conducted across the banking, insurance, and superannuation industries.

    August 04, 2022 WebPage Regulatory News
    News

    ACPR Publishes Updates Related to CRD IV and Covered Bonds

    The French Prudential Supervisory Authority (ACPR) published a notice related to the methods for calculating and publishing prudential ratios under the Capital Requirements Directive (CRD IV) and the minimum requirement for own funds and eligible liabilities (MREL).

    August 03, 2022 WebPage Regulatory News
    News

    BIS Paper Contributes to Debate on Regulating NBFIs and Big Techs

    The Financial Stability Institute (FSI) of the Bank for International Settlements recently published a paper proposing a framework for classifying financial stability regulation as either entity-based or activity-based.

    August 03, 2022 WebPage Regulatory News
    News

    EIOPA Publishes Guidance on Climate Change Scenarios in ORSA

    The European Insurance and Occupational Pension Authority (EIOPA) published the risk dashboard based on Solvency II data and the final version of the application guidance on climate change materiality assessments and climate change scenarios in the Own Risk and Solvency Assessment (ORSA).

    August 02, 2022 WebPage Regulatory News
    News

    EBA and ECB Respond to Proposals on Sustainability Disclosures

    The European Banking Authority (EBA) and the European Central Bank (ECB) published their responses to the consultations of the International Sustainability Standards Board (ISSB) and the European Financial Reporting Advisory Group (EFRAG) on sustainability-related disclosure standards.

    August 01, 2022 WebPage Regulatory News
    News

    BIS Report Notes Existing Gaps in Climate Risk Data at Central Banks

    A Consultative Group on Risk Management (CGRM) at the Bank for International Settlements (BIS) published a report that examines incorporation of climate risks into the international reserve management framework.

    July 29, 2022 WebPage Regulatory News
    News

    EBA Publishes Multiple Regulatory Updates for Regulated Entities

    The European Banking Authority (EBA) published the final guidelines on liquidity requirements exemption for investment firms, updated version of its 5.2 filing rules document for supervisory reporting, and Single Rulebook Question and Answer (Q&A) updates in July 2022.

    July 29, 2022 WebPage Regulatory News
    News

    EIOPA Issues SII Taxonomy and Guide on Sustainability Preferences

    The European Insurance and Occupational Pensions Authority (EIOPA) published Version 2.8.0 of the Solvency II data point model (DPM) and XBRL taxonomy.

    July 29, 2022 WebPage Regulatory News
    News

    EESC Opines on Proposals on CRR and European Single Access Point

    The European Union published, in the Official Journal of the European Union, an opinion from the European Economic and Social Committee (EESC); the opinion is on the proposal for a regulation to amend the Capital Requirements Regulation (CRR).

    July 29, 2022 WebPage Regulatory News
    News

    HM Treasury Publishes Multiple Regulatory Updates in July 2022

    HM Treasury published a draft statutory instrument titled “The Financial Services (Miscellaneous Amendments) (EU Exit) Regulations 2022,” along with the related explanatory memorandum and impact assessment.

    July 29, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8423