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

    APRA Publishes FAQs on Capital Treatment of Overseas Subsidiaries

    The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to clarify the regulatory capital treatment of investments in the overseas deposit-taking and insurance subsidiaries.

    September 15, 2021 WebPage Regulatory News
    News

    PRA Finalizes Changes to Consolidated Prudential Rules Under CRD5/CRR2

    The Prudential Regulation Authority (PRA) issued the policy statement PS20/21, which contains final rules for the application of existing consolidated prudential requirements to financial holding companies and mixed financial holding companies.

    September 15, 2021 WebPage Regulatory News
    News

    EBA Finalizes Guidance to Assess Breaches of Large Exposure Limits

    The European Banking Authority (EBA) published the final report on the guidelines specifying the criteria to assess the exceptional cases when institutions exceed the large exposure limits and the time and measures needed for institutions to return to compliance.

    September 15, 2021 WebPage Regulatory News
    News

    EBA Revises Guidelines on Stress Tests of Deposit Guarantee Schemes

    The European Banking Authority (EBA) revised the guidelines on stress tests to be conducted by the national deposit guarantee schemes under the Deposit Guarantee Schemes Directive (DGSD).

    September 15, 2021 WebPage Regulatory News
    News

    HKMA Endorses Industry Guidance to Support LIBOR Transition

    The Hong Kong Monetary Authority (HKMA) issued a circular, for all authorized institutions, to confirm its support of an information note that sets out various options available in the loan market for replacing USD LIBOR with the Secured Overnight Financing Rate (SOFR).

    September 14, 2021 WebPage Regulatory News
    News

    OCC Issues Booklet on Supervision of Problem Banks

    The Office of the Comptroller of the Currency (OCC) issued a new "Problem Bank Supervision" booklet of the Comptroller's Handbook. The booklet covers information on timely identification and rehabilitation of problem banks and their advanced supervision, enforcement, and resolution when conditions warrant.

    September 13, 2021 WebPage Regulatory News
    News

    MAS Consults on Capital and Reporting Requirements for Market Risk

    The Monetary Authority of Singapore (MAS) launched a consultation on the standards for market risk capital and the associated reporting requirements for banks incorporated in Singapore.

    September 13, 2021 WebPage Regulatory News
    News

    FDIC Announces Winners of Tech Sprint to Reach Unbanked Consumers

    The tech lab of the Federal Deposit Insurance Corporation (FDIC) selected three winning teams in a tech sprint designed to explore new technologies and techniques to help banks meet the needs of unbanked consumers.

    September 13, 2021 WebPage Regulatory News
    News

    PRA Letter Sets Out Findings on Reliability of Regulatory Reporting

    PRA published a "Dear CEO" letter that sets out findings of a review on the reliability of regulatory reporting and reiterates the supervisory expectations on regulatory reporting.

    September 10, 2021 WebPage Regulatory News
    News

    APRA Connect to Go Live; APRA to Reduce Reliance on CLF

    The Australian Prudential Regulation Authority (APRA) confirmed that its new data collection solution APRA Connect will go live on September 13, 2021.

    September 10, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7472