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

    APRA Issues Operational Risk Rules, Consults on Reporting Requirements

    APRA published an updated prudential standard APS 115 that sets out operational risk requirements for authorized deposit-taking institutions in Australia.

    December 11, 2019 WebPage Regulatory News
    News

    APRA Decides to Keep Countercyclical Capital Buffer for Banks at 0%

    APRA announced its decision to keep the countercyclical capital buffer (CCyB) for authorized deposit-taking institutions on hold at zero percent.

    December 11, 2019 WebPage Regulatory News
    News

    EBA Issues Revised List of Validation Rules for Reporting by Banks

    EBA published a revised list of validation rules in its implementing technical standards on supervisory reporting.

    December 10, 2019 WebPage Regulatory News
    News

    SRB Holds Annual Conference, Reflects on Turning Policy into Action

    SRB published a report on its fourth annual conference that was held on October 10, 2019 in Brussels.

    December 10, 2019 WebPage Regulatory News
    News

    FED Extends Consultation Period for Capital Requirements for Insurers

    FED is extending comment period for the proposed rule establishing risk-based capital requirements for depository institution holding companies that are significantly engaged in insurance activities.

    December 10, 2019 WebPage Regulatory News
    News

    OSFI Sets Domestic Stability Buffer Level at 2.25%

    OSFI has set the Domestic Stability Buffer, or DSB, at 2.25% of total risk-weighted assets, with effect from April 30, 2020.

    December 10, 2019 WebPage Regulatory News
    News

    FSB Examines Financial Stability Aspects of Bigtech and Cloud Services

    FSB published two reports that consider the financial stability implications from the offering of financial services by bigtech firms and the adoption of cloud computing and data services across a range of functions at financial institutions.

    December 09, 2019 WebPage Regulatory News
    News

    HKMA Proposes Changes to Module on Supervision of Concentration Risk

    HKMA issued a circular proposing revisions to the Supervisory Policy Manual module CR-L-1 on consolidated supervision of concentration risks under the Banking (Exposure Limits) Rules (BELR) Rule 6.

    December 09, 2019 WebPage Regulatory News
    News

    BoE Updates XBRL Filing Manual for Reporting Under Solvency II

    BoE has updated the XBRL filing manual (to Version 5.0) to help firms and software vendors create XBRL instance documents for Solvency II Pillar 3 and BoE Insurance reporting.

    December 09, 2019 WebPage Regulatory News
    News

    APRA Specifies Capital Treatment of Equity Investments in ABGF

    APRA published a letter to the authorized deposit-taking institutions outlining the regulatory capital treatment of their equity investments in the Australian Business Growth Fund (ABGF).

    December 09, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 4301