HKMA Announcement on Timeline for Implementation of Market Risk Rules
HKMA announced that it will closely monitor the progress across major jurisdictions on the implementation of market risk capital requirements and finalize the timeline for Hong Kong when there is more clarity on the implementation status internationally. In a letter addressed to the Chief Executives of locally incorporated authorized institutions, HKMA also announced that, early next year, it will conduct a local quantitative impact study (QIS) on locally incorporated authorized institutions to assess the impact of the new standards for Hong Kong.
According to the latest BCBS timetable, banks would be required to calculate their market risk based on the new standards from January 01, 2022. However, the regulator understands the concern of the industry about the challenges arising from different implementation timelines across major jurisdictions. To address this, HKMA will closely monitor the progress in these jurisdictions and finalize timeline for Hong Kong when there is more clarity on the implementation status internationally. In the meantime, as a transitional arrangement, locally incorporated authorized institutions will be required to implement the new market risk framework in Hong Kong for reporting purposes only by January 01, 2022.
Keywords: Asia Pacific, Hong Kong, Banking, Market Risk, Regulatory Capital, Basel III, BCBS, HKMA
Featured Experts

María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer

Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.

Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Previous Article
APRA Raises Capital Requirements for Westpac, Launches InvestigationRelated Articles
EBA Launches Stress Tests for Banks, Issues Other Updates
The European Banking Authority (EBA) launched the 2023 European Union (EU)-wide stress test, published annual reports on minimum requirement for own funds and eligible liabilities (MREL) and high earners with data as of December 2021.
EBA Proposes Standards for IRRBB Reporting Under Basel Framework
The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.
FED Issues Further Details on Pilot Climate Scenario Analysis Exercise
The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.
US Agencies Issue Several Regulatory and Reporting Updates
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
ECB Issues Multiple Reports and Regulatory Updates for Banks
The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.
HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements
The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.
EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR
The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.
CBIRC Revises Measures on Corporate Governance Supervision
The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.
HKMA Publications Address Sustainability Issues in Financial Sector
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
EBA Updates Address Basel and NPL Requirements for Banks
The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.