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

    EBA Analyzes Impact of Unwind Mechanism of Liquidity Coverage Ratio

    EBA published a report analyzing the impact of the unwind mechanism of the liquidity coverage ratio (LCR) for a sample of European banks over a three-year period, from the end of 2016 to the first quarter of 2020.

    November 19, 2020 WebPage Regulatory News
    News

    ECB Outlines Views on Possible Changes to AnaCredit Rule and TLTROs

    In response to questions from a member of the European Parliament, the ECB President Christine Lagarde issued a letter clarifying the possibility of amending the AnaCredit Regulation and making targeted longer-term refinancing operations (TLTROs) dependent on the climate-related impact of bank loans.

    November 19, 2020 WebPage Regulatory News
    News

    IASB Begins First Phase of Post-Implementation Review of IFRS 9

    IASB started the post-implementation review of the classification and measurement requirements in IFRS 9 on financial instruments and added the review as a project to its work plan.

    November 18, 2020 WebPage Regulatory News
    News

    FSB Report Examines Progress in Resolvability of Systemic Institutions

    FSB published a report that examines progress in implementing policy measures to enhance the resolvability of systemically important financial institutions.

    November 18, 2020 WebPage Regulatory News
    News

    EBA Benchmarks National Insolvency Frameworks Across EU

    EBA published a report on the benchmarking of national loan enforcement frameworks across 27 EU member states, in response to the call for advice from EC.

    November 18, 2020 WebPage Regulatory News
    News

    FSB Reports Assess Impact of Pandemic on Financial Stability

    FSB published a letter from its Chair Randal K. Quarles, along with two reports exploring various aspects of the market turmoil resulting from the COVID-19 event.

    November 17, 2020 WebPage Regulatory News
    News

    RBNZ Consults on Implementation of Capital Review Changes

    RBNZ launched a consultation on the details for implementing the final Capital Review decisions announced in December 2019.

    November 17, 2020 WebPage Regulatory News
    News

    IASB Announces Andreas Barckow as the New Chair from July 2021

    The Trustees of the IFRS Foundation, which are responsible for the governance and oversight of IASB, have announced the appointment of Dr. Andreas Barckow as the IASB Chair, effective July 2021.

    November 17, 2020 WebPage Regulatory News
    News

    HKMA Consults on Capital Rules for Bank Equity Investments in Funds

    HKMA issued a letter to consult the banking industry on a full set of proposed draft amendments to the Banking (Capital) Rules for implementing the Basel standard on capital requirements for banks’ equity investments in funds in Hong Kong.

    November 17, 2020 WebPage Regulatory News
    News

    ESRB Supports Extension of Macro-Prudential Measure by Swedish FSA

    ESRB published an opinion assessing the decision of Swedish Financial Supervisory Authority (FSA) to extend the application period of a stricter measure for residential mortgage lending, in accordance with Article 458 of the Capital Requirements Regulation (CRR).

    November 17, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 6153