Featured Product

    HKMA Revises Regulatory Framework for Supervision of Liquidity Risk

    August 28, 2020

    HKMA issued the revised version (Version 3) of the Supervisory Policy Manual module LM-1 on the regulatory framework for supervision of liquidity risk, as a statutory guideline under the Banking Ordinance. The revised module incorporates regulatory requirements consequential to the commencement of the Banking (Liquidity) (Amendment) Rules 2019 and reflects latest developments in the Basel III liquidity standards.

    The revised policy module is a statutory guideline on the regulatory framework adopted by HKMA for supervising liquidity risk at authorized institutions. It offers guidelines with respect to liquidity-related disclosures and sets out the approach of HKMA in assessing authorized institutions’ compliance with the statutory liquidity requirements, including the liquidity coverage ratio (LCR), the liquidity maintenance ratio, the net stable funding ratio (NSFR), and the core funding ratio. In its risk-based supervision, HKMA conducts offsite analysis of the liquidity positions of an authorized institution. The information required for analysis is primarily obtained through regular submissions of these returns:

    • Return on Liquidity Position of an Authorized Institution (MA(BS)1E)
    • Return on Stable Funding Position of an Authorized Institution (MA(BS)26)
    • Return on Intraday Liquidity Position of an Authorized Institution (MA(BS)22)
    • Return on Liquidity Monitoring Tools (MA(BS)23)
    • Return on Selected Data for Liquidity Stress-Testing (MA(BS)18)

    This revised module should be read in conjunction with the the Banking (Liquidity) Rules, the Code of Practice under §97M of the Banking Ordinance, the Completion Instructions for Returns MA(BS)1E and MA(BS)26, LM-2, and other relevant supervisory documents that may be issued by HKMA.

     

    Keywords: Asia Pacific, Hong Kong, Banking, Liquidity Risk, LCR, NSFR, Supervisory Policy Manual, Banking Liquidity Rules, Reporting, Disclosures, Basel, HKMA

    Featured Experts
    Related Articles
    News

    OSFI Issues Results of Pilot on Climate Risk Scenario Analysis

    The Office of the Superintendent of Financial Institutions (OSFI) published an update on the discussion paper that intended to engage federally regulated financial institutions and other interested stakeholders in a dialog with OSFI, to proactively enhance and align assurance expectations over key regulatory returns.

    January 20, 2022 WebPage Regulatory News
    News

    EC Issues Regulation on Adjustments to K-Factor Coefficients Under IFR

    The European Commission (EC) published a report summarizing responses to the targeted consultation on the supervisory convergence and the single rulebook in the European Union (EU).

    January 20, 2022 WebPage Regulatory News
    News

    ECB Issues Opinions on Green Bonds Standard and CRR Proposals

    The European Central Bank (ECB) published its opinion on a proposal for a regulation on European green bonds, following a request from the European Parliament.

    January 19, 2022 WebPage Regulatory News
    News

    ESRB Explores Policy Response to Risks Arising from Digitalization

    The Advisory Scientific Committee (ASC) of the European Systemic Risk Board (ESRB) published a report that explores the expected impact of digitalization on provision of financial and banking services, and proposes policy measures to address the risks stemming from digitalization.

    January 18, 2022 WebPage Regulatory News
    News

    HKMA Consults on FIRO Code, Revises Policy on Foreign Exchange Risk

    The Hong Kong Monetary Authority (HKMA) is consulting on the draft Financial Institutions (Resolution) Ordinance (Cap. 628), or FIRO, Code of Practice chapter on liquidity and funding in resolution, until March 14, 2022.

    January 18, 2022 WebPage Regulatory News
    News

    FI Publishes Multiple Regulatory and Reporting Updates

    The Swedish Financial Supervisory Authority (FI) announced that the capital adequacy reporting as at December 31, 2021 must be done by February 11, 2022.

    January 17, 2022 WebPage Regulatory News
    News

    EU Authorities Address COVID-19 Reporting, MCD, and PSD2 Issues

    The European Banking Authority (EBA) announced that the guidelines on the reporting and disclosure of exposures subject to measures COVID-relief measures shall continue to apply until further notice.

    January 17, 2022 WebPage Regulatory News
    News

    BSP Tackles Aspects of Lending and Islamic, Open & Sustainable Finance

    The Central Bank of the Philippines (BSP) issued communications covering developments related to online lending platforms, open finance framework and roadmap, and on the expected regulations in the area sustainable finance.

    January 16, 2022 WebPage Regulatory News
    News

    US Agencies Issue Regulatory Updates, FDIC Launches Tech Sprint

    The Board of Governors of the Federal Reserve System (FED) published the final rule that amends Regulation I to reduce the quarterly reporting burden for member banks by automating the application process for adjusting their subscriptions to the Federal Reserve Bank capital stock, except in the context of mergers.

    January 13, 2022 WebPage Regulatory News
    News

    EBA Issues Guide on Bank Resolvability, Consults on Transferability

    The European Banking Authority (EBA) published its assessment of risks through the quarterly Risk Dashboard and the results of the Autumn edition of the Risk Assessment Questionnaire (RAQ).

    January 13, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 7881