HKMA informed the authorized institutions that negative vetting, by the Legislative Council, of the Banking (Capital) (Amendment) Rules 2020 (BCAR) has now expired. The BCAR 2020 will come into operation on June 30, 2021. BCAR 2020 has been published in the Hong Kong Gazette. The amendments in the BCAR 2020 are intended to implement the two BCBS-issued capital standards for treatment of banks' counterparty credit risk exposures to derivatives trades. These standards involve the standardized approach for measuring counterparty credit risk exposures (SA-CCR) and the capital requirements for bank exposures to central counterparties. These standards form a part of the Basel III reform package.
Effective Date: June 30, 2021
Keywords: Asia Pacific, Hong Kong, Banking, BCAR, Basel III, Regulatory Capital, Negative Vetting, Counterparty Credit Risk, SA CCR, Standardized Approach, BCBS, HKMA
BCBS amended the guidelines on sound management of risks related to money laundering and financing of terrorism (ML/FT).
US Agencies (Farm Credit Administration, FDIC, FED, FHFA, and OCC) finalized changes to the swap margin rule to facilitate implementation of prudent risk management strategies at banks and other entities with significant swap activities.
PRA published a letter that builds on the expectations set out in the supervisory statement (SS3/19) on enhancing banks' and insurers' approaches to managing the financial risks from climate change.
EBA finalized the guidelines on treatment of structural foreign-exchange (FX) positions under Article 352(2) of the Capital Requirements Regulation (CRR).
FSB published a statement on the impact of COVID-19 pandemic on global benchmark transition.
IAIS published the list of Internationally Active Insurance Groups (IAIGs) publicly disclosed by group-wide supervisors.
FED has temporarily revised the reporting form on consolidated financial statements for holding companies (FR Y-9C; OMB No. 7100-0128).
EC launched a consultation on the review of the key elements of Solvency II Directive, with the comment period ending on October 21, 2020.
ECB launched a consultation on the guide that sets out supervisory approach to consolidation projects in the banking sector.
IAIS published technical specifications, questionnaires, and templates for 2020 Insurance Capital Standard (ICS) and Aggregation Method data collections.