Featured Product

    HKMA Announces Finalization of Banking Liquidity Amendment Rules 2019

    November 15, 2019

    HKMA issued a letter informing all authorized institutions that negative vetting of the Banking (Liquidity) (Amendment) Rules 2019 (BLAR) has now expired. Thus, the BLAR will now come into operation from January 01, 2020. The main changes to the Banking (Liquidity) Rules are to recognize Basel-compliant listed ordinary shares and triple-B rated marketable debt securities as “level 2B assets” and “liquefiable assets” under the Liquidity Coverage Ratio (LCR) and the Liquidity Maintenance Ratio, respectively. The changes to BLAR also implement a funding requirement on total derivative liabilities under the Net Stable Funding Ratio (NSFR) and the Core Funding Ratio.

    The BLAR amends the Banking (Liquidity) Rules. The key changes relate to recognition of the Basel-compliant listed ordinary shares and certain marketable debt securities issued by corporates, sovereigns, central banks, or public-sector entities as level 2B assets in calculating LCR of a category 1 institution ratio and as liquefiable assets in calculating the Liquidity Maintenance Ratio of a category 2 institution. The amendments also relate to the implementation of a required stable funding factor of 5% on total derivative liabilities (before adjustments) in calculating NSFR of a category 1 institution and a required core funding factor of 5% on total derivative liabilities (before adjustments) in calculating the core funding ratio of a category 2A institution. The BLAR 2019 also makes amendments to LCR provisions in the Banking (Liquidity) Rules to reflect the latest BCBS guidance on the eligibility of level 2B assets.

     

    Effective Date: January 01, 2020

    Keywords: Asia Pacific, Hong Kong, Banking, BLAR, Basel III, LCR, NSFR, Liquidity Risk, Liquidity Maintenance Ratio, HKMA

    Featured Experts
    Related Articles
    News

    LEI ROC Confirmed as Governance Body for OTC Derivatives Identifiers

    FSB confirmed the Regulatory Oversight Committee (ROC) of the Global Legal Entity Identifier System (GLEIS) as the International Governance Body for the globally harmonized identifiers used to track over-the-counter (OTC) derivatives transactions, with effect from October 01, 2020.

    September 25, 2020 WebPage Regulatory News
    News

    FCA Consults on Regulation of International Firms in UK

    FCA is consulting on its approach to the authorization and supervision of international firms operating in UK.

    September 25, 2020 WebPage Regulatory News
    News

    EBA Launches Transparency Exercise for Banks in EU

    EBA launched the seventh annual transparency exercise for banks in EU.

    September 25, 2020 WebPage Regulatory News
    News

    EBA Publishes Single Rulebook Q&A Updates in September 2020

    The EBA Single Rulebook question and answer (Q&A) tool updates for this month include answers to 32 questions.

    September 25, 2020 WebPage Regulatory News
    News

    MAS Amends Notices on NSFR and Single Counterparty Credit Exposures

    MAS published amendments to the Notice 652 on net stable funding ratio (NSFR), along with the related reporting template.

    September 24, 2020 WebPage Regulatory News
    News

    EC Publishes Action Plan for Capital Markets Union in EU

    EC published the action plan to enhance the Capital Markets Union in EU over the coming years.

    September 24, 2020 WebPage Regulatory News
    News

    EC Proposes Frameworks for Crypto-Assets and Operational Resilience

    EC adopted a package that includes the digital finance and retail payments strategies and the legislative proposals for regulatory frameworks on crypto-assets and digital operational resilience.

    September 24, 2020 WebPage Regulatory News
    News

    ECB Publishes Opinion on Proposals to Amend Securitization Framework

    ECB published an opinion (CON/2020/22) on proposals for regulations amending the securitization framework of EU, in response to the COVID-19 pandemic.

    September 24, 2020 WebPage Regulatory News
    News

    APRA Updates Validation and Derivation Rules in September 2020

    APRA updated the lists of the Direct to APRA (D2A) validation and derivation rules for authorized deposit-taking institutions, insurers, and superannuation entities.

    September 24, 2020 WebPage Regulatory News
    News

    MAS Amends Notice on Capital Adequacy Requirements of Banks

    MAS published amendments to Notice 637 on the risk-based capital adequacy requirements for reporting banks incorporated in Singapore.

    September 23, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5845