Featured Product

    HKMA Announces Publication of Amendments to the Banking Ordinance 2018

    November 16, 2018

    HKMA announced that the Banking Exposure Limits Rules (BELR), the Banking Capital Amendment Rules 2018 (BCAR), and the Banking Disclosure Amendment) (No. 2) Rules 2018 (BDAR) have been gazetted. These gazetted rules implement the recent international standards on banking regulation in Hong Kong. The three pieces of subsidiary legislation will be tabled before the Legislative Council for negative vetting on November 21, 2018. Subject to the views of the Legislative Council, the subsidiary legislation should come into operation.

    BELR. The BELR replaces the existing Banking Exposure Limits Rules (containing an equity exposure limit) and other exposure limits in Part XV of the Banking Ordinance. The BELR implements the 2014 Basel standards on Supervisory framework for measuring and controlling large exposures.

    BCAR. The amendments in the BCAR mainly incorporate, into the Banking Capital Rules, the 2016 Basel standard on total loss-absorbing capacity (TLAC) holdings, a capital treatment to address concentration risk in sovereign exposures supplementary to the implementation of the BELR, and the “internal assessment approach” of the 2014 Basel III Document on revisions to the securitization framework; the revisions to the securitization framework, which is a methodology for calculating capital requirement designed for certain securitization exposures in asset-backed commercial paper programs. HKMA also specified the HKMC Insurance Limited and the HKMC Annuity Limited as domestic public-sector entities for preferential capital treatment under the Banking Capital Rules to cater for the business restructuring of the Hong Kong Mortgage Corporation Limited and to introduce certain miscellaneous amendments to enhance the consistency and clarity of certain provisions in the Banking Capital Rules.

    BDAR. The Disclosure rules contain a minor consequential adjustment to the definition of “capital requirements” to align with the capital treatment to address concentration risk in sovereign exposures (as referred to in BCAR).

    The amendments in the BCAR other than those in relation to TLAC holdings and concentration risk in sovereign exposures come into operation on January 11, 2019. April 01, 2019  is the effective date for amendments in the BCAR in relation to TLAC holdings while July 01, 2019 is the effective date for the BELR, the BDAR, and amendments in the BCAR in relation to concentration risk in sovereign exposures.


    Effective Date: January 11, 2019/April 01, 2019/July 01, 2019

    Keywords: Asia Pacific, Hong Kong, Banking, Banking Ordinance, Large Exposures, Disclosures, TLAC, ABCP Securitization, Hong Kong Government, HKMA

    Featured Experts
    Related Articles
    News

    FSI Paper Examines Use of Suptech Initiatives by Financial Authorities

    The Financial Stability Institute (FSI) of BIS published a paper that examines the suptech developments by analyzing suptech initiatives of 39 financial authorities globally.

    October 17, 2019 WebPage Regulatory News
    News

    US Agencies Consult on Policy Statement on Allowance for Credit Losses

    US Agencies (FDIC, FED, NCUA, and OCC) are consulting on the policy statement on allowances for credit losses and on the guidance on credit risk review systems.

    October 17, 2019 WebPage Regulatory News
    News

    PRA Consults on Approach to Supervising Liquidity and Funding Risks

    In consultation paper (CP27/19), PRA published a proposal (CP27/19) to update the supervisory statement SS24/15 on the PRA approach to supervising liquidity and funding risk.

    October 17, 2019 WebPage Regulatory News
    News

    FSB Report Examines Implementation and Impact of G20 Financial Reforms

    FSB published fifth annual report on the implementation and effects of the G20 financial regulatory reforms.

    October 16, 2019 WebPage Regulatory News
    News

    EBA Launches Consultation on Comprehensive Pillar 3 Disclosures

    EBA proposed the new comprehensive implementing technical standard (ITS) for public disclosures by financial institutions.

    October 16, 2019 WebPage Regulatory News
    News

    EBA Consults on Revised Technical Standards on Supervisory Reporting

    EBA launched a consultation on the revised implementing technical standards, or ITS, on supervisory reporting.

    October 16, 2019 WebPage Regulatory News
    News

    BoE and FCA Examine Use of Machine Learning in Financial Sector in UK

    BoE and FCA published a report on the results of a joint survey by BoE and FCA in 2019 to better understand the use of machine learning in the financial services sector in UK.

    October 16, 2019 WebPage Regulatory News
    News

    BCBS Report Examines Progress on Adoption of Basel Framework

    BCBS published the seventeenth progress report on adoption of Basel regulatory framework.

    October 16, 2019 WebPage Regulatory News
    News

    APRA Proposes Measures to Strengthen Capital for Bank Depositors

    APRA proposed changes to APS 111, which is the prudential standard on measuring capital adequacy and establishes the criteria for regulatory capital requirements of authorized deposit-taking institutions.

    October 15, 2019 WebPage Regulatory News
    News

    EIOPA Consults on Technical Advice for the 2020 Review of Solvency II

    EIOPA is consulting on an opinion that sets out technical advice for the 2020 review of Solvency II.

    October 15, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 3981