Featured Product

    HKMA Publishes the Annual Report for 2018

    April 26, 2019

    HKMA published the annual report for 2018, which summarizes its work activities during 2018. The report reveals that the Hong Kong banking system remained sound in 2018, notwithstanding increased uncertainties in the global economy and the financial markets.

    The report highlights that substantial progress was made on the local implementation of international regulatory standards, including capital adequacy standards, disclosure standards, liquidity standards, and large exposure limits. HKMA’s interface with the banking industry was enhanced to ensure an appropriate balance between supervisory effectiveness and market development. Meanwhile, HKMA continued its work to ensure there is a credible resolution regime for authorized institutions, including introducing rules on minimum loss-absorbing capacity requirements to address a significant impediment to authorized institutions’ resolvability.

    During the year, HKMA continued to focus its supervisory efforts on reviewing the effectiveness of authorized institutions’ liquidity and credit risk management systems. In view of growing cybersecurity threats and increasing adoption of fintech in the banking industry, HKMA stepped up the supervision of authorized institutions’ technology risk management and operational resilience. HKMA also published a revised guideline on authorization of virtual banks in May and began to process applications for authorization as virtual banks. In addition, the scope of the Banking Made Easy initiative was expanded in September to facilitate the adoption of regulatory technology (regtech) by banks. Three new workstreams focusing on surveillance technologies for AML/CFT, regtech for prudential risk management and compliance, and machine-readable regulations were created. As part of the Cyber Resilience Assessment Framework (C-RAF), during the year, HKMA conducted on-site examinations focusing on authorized institutions’ cyber-security controls, outsourcing arrangements, and information technology governance. 

    On conduct supervision, HKMA took further steps to enhance the supervision of authorized institutions’ sales practices for investment and insurance products, facilitate access to barrier-free banking services to customers with disabilities, and promote a customer-centric corporate culture. HKMA also reviewed authorized institutions’ market risk management for their debt securities portfolios. Thematic on-site examinations were undertaken to evaluate authorized institutions’ compliance with the new international standards on treasury activities, including the Foreign Exchange Global Code, and the margining and risk mitigation standards on non-centrally cleared over-the-counter (OTC) derivatives.

     

    Keywords: Asia Pacific, Hong Kong, Banking, Annual Report, Regtech, Cyber Risk, Market Risk, TLAC, HKMA

    Related Articles
    News

    BCBS Amends Guidelines on Sound Management of AML/CFT Risks

    BCBS amended the guidelines on sound management of risks related to money laundering and financing of terrorism (ML/FT).

    July 02, 2020 WebPage Regulatory News
    News

    EBA Guidelines on Treatment of Structural Foreign Exchange Under CRR

    EBA finalized the guidelines on treatment of structural foreign-exchange (FX) positions under Article 352(2) of the Capital Requirements Regulation (CRR).

    July 01, 2020 WebPage Regulatory News
    News

    FSB Issues Statement on Impact of COVID-19 Crisis on Benchmark Reform

    FSB published a statement on the impact of COVID-19 pandemic on global benchmark transition.

    July 01, 2020 WebPage Regulatory News
    News

    IAIS Publishes List of Internationally Active Insurance Groups

    IAIS published the list of Internationally Active Insurance Groups (IAIGs) publicly disclosed by group-wide supervisors.

    July 01, 2020 WebPage Regulatory News
    News

    FED Temporarily Revises FR Y-9C With Respect to PPPLF and CARES Act

    FED has temporarily revised the reporting form on consolidated financial statements for holding companies (FR Y-9C; OMB No. 7100-0128).

    July 01, 2020 WebPage Regulatory News
    News

    EC Launches Consultation on Review of Solvency II Directive

    EC launched a consultation on the review of the key elements of Solvency II Directive, with the comment period ending on October 21, 2020.

    July 01, 2020 WebPage Regulatory News
    News

    ECB Consults on Supervisory Approach to Consolidation in Banking

    ECB launched a consultation on the guide that sets out supervisory approach to consolidation projects in the banking sector.

    July 01, 2020 WebPage Regulatory News
    News

    PRA Letter Sets Expectations on Approach to Managing Climate Risks

    PRA published a letter that builds on the expectations set out in the supervisory statement (SS3/19) on enhancing banks' and insurers' approaches to managing the financial risks from climate change.

    July 01, 2020 WebPage Regulatory News
    News

    US Agencies Finalize Amendments to Swap Margin Rule

    US Agencies (Farm Credit Administration, FDIC, FED, FHFA, and OCC) finalized changes to the swap margin rule to facilitate implementation of prudent risk management strategies at banks and other entities with significant swap activities.

    July 01, 2020 WebPage Regulatory News
    News

    IAIS on Package for 2020 Data Collection on ICS and Aggregation Method

    IAIS published technical specifications, questionnaires, and templates for 2020 Insurance Capital Standard (ICS) and Aggregation Method data collections.

    June 30, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5425