HKMA Leads Cross-Border Resolution and Green Finance Groups in Asia
HKMA has been appointed as the chair of the Study Group on Resolution of the Executives’ Meeting of East Asia-Pacific Central Banks (EMEAP) for a two-year term from 2020 to 2022. The Study Group on Resolution is a resolution-specific forum within EMEAP and builds on the good work of the previous EMEAP resolution forum, the Focused Meeting on Resolution. The Study Group on Resolution supports knowledge-sharing and discussion among regional authorities in relation to resolution in a cross-border context. The chair of the Study Group on Resolution will be Mr. Stefan Gannon, Commissioner, Resolution Office and the secretariat function will be performed by the HKMA Resolution Office.
Additionally, the Center for Green Finance (CGF) under the HKMA Infrastructure Financing Facilitation Office (IFFO) and the International Finance Corporation (IFC), a member of the World Bank Group, co-hosted the first IFC Climate Business Webinar during December 14-15, 2020. The event took place virtually in lieu of the previously planned 6th Annual IFC Business Forum, an IFC flagship event to discuss best practices in sustainable business and green banking. The Webinar attracted over 1,500 participants globally from Asia, Europe, the Middle East, Africa, and the Americas. During the IFC Climate Business Webinar, Mr. Eddie Yue, Chief Executive of the HKMA and Mr. Vivek Pathak, IFC’s Director for East Asia and the Pacific, discussed the recent launch of the Alliance for Green Commercial Banks, which is a new global initiative that brings together financial institutions, banking industry associations, research institutions, and innovative technology providers to work together to develop a community of green commercial banks across emerging markets and finance the infrastructure and business solutions needed to urgently address climate change.
Starting in Asia, in partnership with HKMA, IFC will work to support financial institutions on their journey to become leading green banks. As the founding member and first regional anchor of the Alliance, HKMA will partner with IFC to facilitate green knowledge-sharing between banks, conduct research on green investment opportunities in Asia, provide green finance. "The Alliance will promote green commercial banking that helps banks and their clients manage climate-related risks and seize green and sustainable investment opportunities,” said Eddie Yue, Chief Executive of the HKMA. “The Alliance will help commercial banks green their loan portfolios, design new climate-smart products and services, make their operations carbon neutral, and ultimately make green finance part of their core business. It will also help them manage exposure to climate risk and adopt best practices in managing environmental and social risk in lending and investment, which are areas where IFC has significant global experience,” said Vivek Pathak, IFC’s Regional Director for East Asia and the Pacific.
Keywords: Asia Pacific, Hong Kong, Banking, Climate Change Risk, Sustainable Finance, Cross-Border Resolution, Resolution Framework, HKMA
Featured Experts
Michael Denton, PhD, PE
Dr. Denton provides industry leadership in the quantification of sustainability issues, climate risk, trade credit and emerging lending risks. His deep foundations in market and credit risk provide critical perspectives on how climate/sustainability risks can be measured, communicated and used to drive commercial opportunities, policy, strategy, and compliance. He supports corporate clients and financial institutions in leveraging Moody’s tools and capabilities to improve decision-making and compliance capabilities, with particular focus on the energy, agriculture and physical commodities industries.
James Partridge
Credit analytics expert helping clients understand, develop, and implement credit models for origination, monitoring, and regulatory reporting.
Previous Article
FSC Taiwan Requires Banks to Control Real Estate Concentration RiskRelated 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.