Featured Product

    HKMA Consults on Multiple Supervisory Policy Manual Modules for Banks

    May 08, 2019

    HKMA is consulting on multiple modules of Supervisory Policy Manual, including modules on corporate governance, credit risk management, credit exposure limits, and disclosures. The Supervisory Policy Manual of HKMA sets out the latest supervisory policies and practices, the minimum standards authorized institutions are expected to attain to satisfy the requirements of the Banking Ordinance, and the recommendations on best practices that authorized institutions should aim to achieve.

    HKMA is consulting on the following modules of the Supervisory Policy Manual:

    • CA-D-1 Guideline on the Application of the Banking (Disclosure) Rules. This module offers interpretative guidance to authorized institutions on the application of the Banking (Disclosure) Rules (Cap. 155M).
    • CG-5 Guideline on a Sound Remuneration System. This module provides guidance to authorized institutions on the key elements of a sound remuneration system, sets out approach that HKMA will adopt in the supervision of authorized institutions’ remuneration systems, and outlines the level and type of remuneration-related disclosures to be made by authorized institutions. This consultation is scheduled to close on June 16, 2019.
    • CR-G-8 Large Exposures and Risk Concentrations. This module sets out the minimum standards and requirements that authorized institutions are expected to follow and describes how HKMA proposes to exercise its supervisory powers, in relation to controls on large exposures and risk concentrations.
    • CR-G-9 Exposures to Connected Parties. This module specifies systems and controls that authorized institutions should have to identify, measure, monitor, and control their exposures to connected parties (including those covered under Part 8).
    • CR-L-1 Consolidated Supervision of Concentration Risks under Banking (Exposure Limits) Rules: Rule 6. This module sets out general principles governing the application of consolidated supervision of concentration risks and explains how HKMA will apply these principles.
    • CR-L-3 Letters of Comfort: Rule 57(1)(d). This module specifies the criteria that HKMA applied in assessing the acceptability of letters of comfort for large exposure purposes and the factors taken into account in setting and renewing limits for such letters.
    • CR-L-4 Underwriting of Securities: Banking (Exposure Limits) Rules. This module explains the policy of HKMA toward the underwriting and sub-underwriting of securities by authorized institutions in relation to Parts 2, 3, and 7 of the Banking (Exposure Limits) Rules.
    • CR-L-5 Major Acquisitions and Investments: Part 3 of Banking (Exposure Limits) Rules. This module sets out the way HKMA will exercise the powers of consent or approval under Part 3 of Banking (Exposure Limits) Rules.

     

    Comment Due Date: June 16, 2019 (CG-5)

    Keywords: Asia Pacific, Banking, Governance, BELR, Supervisory Policy Manual, Credit Risk, Concentration Risk, Large Exposures, Disclosures, Remuneration, HKMA

    Related Articles
    News

    HKMA Finalizes Policy Modules on Group-Wide Approach and Remuneration

    The Hong Kong Monetary Authority (HKMA) revised the Supervisory Policy Manual module CG-5 that sets out guidelines on a sound remuneration system for authorized institutions.

    July 29, 2021 WebPage Regulatory News
    News

    EBA Guide to Monitor Threshold for Intermediate Parent Undertakings

    The European Banking Authority (EBA) published the final guidelines on the monitoring of the threshold and other procedural aspects on the establishment of intermediate parent undertakings in European Union (EU), as laid down in the Capital Requirements Directive (CRD).

    July 28, 2021 WebPage Regulatory News
    News

    PRA Finalizes Approach to Supervision of International Banks

    In a recent Market Notice, the Bank of England (BoE) confirmed that green gilts will have equivalent eligibility to existing gilts in its market operations.

    July 26, 2021 WebPage Regulatory News
    News

    FCA Issues PS21/9 on Implementation of Investment Firms Regime

    The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.

    July 26, 2021 WebPage Regulatory News
    News

    EBA Proposes Regulatory Standards to Identify Shadow Banking Entities

    The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.

    July 26, 2021 WebPage Regulatory News
    News

    IOSCO Proposes Recommendations on ESG Ratings and Data Providers

    The Board of the International Organization of Securities Commissions (IOSCO) proposed a set of recommendations on the environmental, social, and governance (ESG) ratings and data providers.

    July 26, 2021 WebPage Regulatory News
    News

    ESMA Group Issues Recommendations on RFR Switch in Interdealer Market

    The European Securities and Markets Authority (ESMA) published recommendations from the Working Group on Euro Risk-Free Rates (RFR) on the switch to risk-free rates in the interdealer market.

    July 26, 2021 WebPage Regulatory News
    News

    ECB Study Assesses Impact of Basel III Finalization Package

    The European Central Bank (ECB) published a paper as well as an article in the July Macroprudential Bulletin, both of which offer insights on the assessment of the impact of Basel III finalization package on the euro area.

    July 26, 2021 WebPage Regulatory News
    News

    ISDA Finds FRTB Results in Higher Capital Charges for Carbon Trading

    The International Swaps and Derivatives Association (ISDA) published a paper that explores the impact of the Fundamental Review of the Trading Book (FRTB) on the trading of carbon certificates.

    July 26, 2021 WebPage Regulatory News
    News

    PRA Updates Remuneration Policy Statement Templates and Tables

    The Prudential Regulation Authority (PRA) published the remuneration policy self-assessment templates and tables on strengthening accountability.

    July 26, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7311