HKMA Revises Guidance on Risk Management of Electronic Banking
HKMA issued a revised version of the Supervisory Policy Manual module TM-E-1 on risk management of electronic banking (e-banking). This module sets out guidance on the sound risk management principles and practices applicable to authorized institutions’ e-banking services. The guidance took into account the latest developments in banking industry, in relevant technologies, and in supervisory guidance used in other major jurisdictions. The guidance is intended to facilitate further development of e-banking in Hong Kong while enhancing the risk management controls of the industry.
Given that e-banking involves the delivery of financial services through technological means, both general risk management principles applicable to the provision of the underlying financial services and the typical technological controls are applicable to e-banking. This module does not repeat the general guidance of HKMA in these areas, instead it elaborates on how the relevant risk management measures may be applied or refined in case of e-banking for different types of customers. Authorized institutions should use a risk-based approach to managing the risks associated with e-banking. In this connection, authorized institutions should comply with the requirements in this module and should also make reference to other relevant Supervisory Policy Manual modules and HKMA guidance issued from time to time.
As part of the risk governance for e-banking, authorized institutions’ senior management should establish clear policies and accountability to ensure that a rigorous independent assessment is performed before the launch of any new electronic delivery channel of e-banking service, or a major enhancement to existing services. The purpose of the independent assessment is to validate whether the e-banking service complies with applicable regulatory guidance and whether sufficient risk management controls are in place in relation to the service or enhancement concerned. In general, items to be reported in the independent assessment should cover, at a minimum, the areas specified in Annex A, and the report should be submitted to HKMA on request.
Keywords: Asia Pacific, Hong Kong, Banking, E-Banking, Risk Management, Supervisory Policy Manual, Independent Assessment, HKMA
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Previous Article
FDIC Adopts Revisions to Company-Run Stress Testing RequirementsRelated Articles
EBA Publishes Final Regulatory Standards on STS Securitizations
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.
ECB Further Reviews Costs and Benefits Associated with IReF
The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.
EBA Publishes Funding Plans Report, Receives EMAS Certification
The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).
MAS Launches SaaS Solution to Simplify Listed Entity ESG Disclosures
The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.
BCBS to Finalize Crypto Rules by End-2022; US to Propose Basel 3 Rules
The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.
IOSCO Welcomes Work on Sustainability-Related Corporate Reporting
The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)
BoE Allows One-Day Delay in Statistical Data Submissions by Banks
The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.
ACPR Amends Reporting Module Timelines Under EBA Framework 3.2
The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.
ECB Paper Discusses Disclosure of Climate Risks by Credit Agencies
The European Central Bank (ECB) published a paper that examines how credit rating agencies accepted by the Eurosystem, as part of the Eurosystem Credit Assessment Framework (ECAF)
APRA to Modernize Prudential Architecture, Reduces Liquidity Facility
The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.
