HKMA reviewed the work done in 2018 and published its priorities for the coming year. The priorities for 2019 are in the areas of implementation of Basel III reform package, suptech as part of the HKMA Digitalization Program, operational resilience and technology risk management, money laundering/terrorist financing risk management, misconduct risk management, liquidity and market risk management, and credit risk management.
The focus areas in credit risk management include small and medium enterprise lending, lending to large corporates, counterparty credit risk management, and loan classification and provisioning. In terms of liquidity and risk management, the HKMA focus will be on assessing—via internal liquidity stress test and contingency funding management—the capability of banks to cope with liquidity shocks and reviewing risk management practices of banks for algorithmic trading. In terms of technology risk management, the focus will be on cyber resilience and recovery, supervision of virtual banks, regtech development, and implementation of Open API.
Keywords: Asia Pacific, Hong Kong, Banking, Work Priorities, Suptech, Regtech, Credit Risk, Market Risk, HKMA
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