HKMA Extends Local Implementation Timeline for IRRBB
HKMA is revising the implementation date of the new interest rate risk in the banking book (IRRBB) standards in Hong Kong, from January 01, 2018 to January 01, 2019. Banks should be ready to measure and report their IRRBB exposures using the proposed standardized framework in 2019, with the first report based on data as of December 31, 2018.
According to the originally intended timeline, banks were expected to be ready to measure and report their IRRBB exposures using the proposed standardized framework by 2018, with the first report to be based on data as of December 31, 2017. HKMA decided to extend the implementation timeline, keeping in mind that the industry responses to the consultation paper expressed legitimate concerns on the relatively tight implementation timeline. The industry highlighted a number of new requirements in the IRRBB standards requiring system changes that would be challenging to implement by January 01, 2018. This consultation paper, which was issued on June 22, 2017, proposed updates to the Supervisory Policy Manual (SPM) IR-1 “Interest Rate Risk Management,” the return “MA(BS)12 – Interest Rate Risk Exposures” (IRR return), and the return “MA(BS)12i – Interest Rate Risk Exposures (Supplementary Information).”
Keywords: Asia Pacific, Hong Kong, Banking, IRRBB, Basel III, Implementation Timeline, 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
APRA Responds to Consultation on CPS 220 for Private Health InsurersRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.