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

    HKMA Sets Out Regulatory Treatment for Personal Loan Guarantee Scheme

    HKMA has published a circular that sets out the regulatory and reporting treatment for loans that participating authorized institutions may grant to eligible borrowers under the 100% Personal Loan Guarantee Scheme.

    April 20, 2021 WebPage Regulatory News
    News

    ECB Completes Targeted Review of Internal Models of Banks

    ECB published the results of the assessment of internal models that banks use to calculate risk-weighted assets for credit, market, and counterparty credit risks.

    April 19, 2021 WebPage Regulatory News
    News

    PRA on Regulatory Treatment of Loans Under Mortgage Guarantee Scheme

    PRA published a statement on the regulatory treatment of retail residential mortgage loans under the Mortgage Guarantee Scheme, or MGS.

    April 19, 2021 WebPage Regulatory News
    News

    FCA Consults on Rules and Reporting Forms for Investment Firms Regime

    FCA is consulting, via CP21/7, on the second phase of proposed rules to introduce the UK Investment Firm Prudential Regime (IFPR).

    April 19, 2021 WebPage Regulatory News
    News

    HMT and BoE Decide to Explore Central Bank Digital Currency in UK

    HM Treasury and BoE announced the joint creation of a Central Bank Digital Currency (CBDC) Taskforce to coordinate the exploration of a potential central bank digital currency in UK.

    April 19, 2021 WebPage Regulatory News
    News

    EIOPA Sets Out Expectations on Use of Climate Risk Scenarios in ORSA

    EIOPA published an opinion to set out its expectations on the supervision of the integration of climate change risk scenarios by insurers in their Own Risk and Solvency Assessment (ORSA).

    April 19, 2021 WebPage Regulatory News
    News

    EC Sets Out Standards for MREL Reporting by Competent Authorities

    EC published the Implementing Regulation 2021/622 that lays down implementing technical standards for reporting of the minimum requirement for own funds and eligible liabilities (MREL).

    April 16, 2021 WebPage Regulatory News
    News

    BCBS to Advance Work on Suptech, Climate Risk, and Basel Monitoring

    BCBS has set out the strategic work priorities, as part of its the work program for 2021-22.

    April 16, 2021 WebPage Regulatory News
    News

    Bundesbank Updates AnaCredit Reporting Requirements

    Bundesbank published two circulars on AnaCredit reporting requirements. Circular 27/2021 covers changes to the reporting of branches, additional attributes to be reported for investment funds from August 01, 2021, and updates to the list of international organizations.

    April 16, 2021 WebPage Regulatory News
    News

    PRA Finalizes Supervisory Approach for Non-Systemic Banks in UK

    PRA published the policy statement PS8/21, which contains the final supervisory statement SS3/21 on the PRA approach to supervision of the new and growing non-systemic banks in UK.

    April 15, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6874