Featured Product

    HKMA Announces Deferral of Implementation of Final Basel III Package

    March 30, 2020

    HKMA announced its plans to defer the implementation of final Basel III package, inline with the timeline announced by the Group of Central Bank Governors and Heads of Supervision (GHOS). On March 27, 2020, BCBS had announced the deferral of the implementation date of the final Basel III standards by one year, to January 01, 2023. BCBS had announced this deferral as part of the ongoing effort by supervisors worldwide to address challenges to the financial system that have been brought about by COVID-19.

    The target implementation of the revised frameworks on credit risk, operational risk, output floor, and leverage ratio, along with their associated disclosure requirements, is being deferred by one year, to January 01, 2023. The locally incorporated authorized institutions will be required to implement the new market risk framework for reporting purposes by January 01, 2023. The local implementation of the actual capital requirements based on the new framework will be no earlier than January 01, 2023. Its timing will take into account the implementation progress observed in major jurisdictions. The local implementation of revised credit valuation adjustment (CVA) framework will be aligned with the revised market risk framework and follow the timelines used there both for reporting and the implementation of the CVA capital requirements.

    The supervisory initiatives are in line with the aims of recent actions taken by HKMA to ameliorate the impact of COVID-19 on Hong Kong’s economy and on the local banking sector. For instance, HKMA encouraged authorized institutions to introduce measures to help tide their customers over this difficult time through forums such as the Banking Sector SME Lending Coordination Mechanism and has provided guidance on the supervisory treatment of these relief measures to ensure that they are rolled out expeditiously. HKMA is also considering the implications of COVID-19 for the authorized institutions' application of the expected credit loss provisioning.


    Keywords: Asia Pacific, Hong Kong, Banking, Basel III, GHOS, Market Risk, COVID 19, CVA, Credit Risk, Operational Risk, HKMA

    Featured Experts
    Related Articles

    ESAs Issue Multiple Regulatory Updates for Financial Sector Entities

    The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.

    November 15, 2022 WebPage Regulatory News

    ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments

    The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.

    November 10, 2022 WebPage Regulatory News

    IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets

    The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.

    November 09, 2022 WebPage Regulatory News

    EBA Finalizes Methodology for Stress Tests, Issues Other Updates

    The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups

    November 09, 2022 WebPage Regulatory News

    OSFI Sets Out Work Priorities and Reporting Updates for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.

    November 07, 2022 WebPage Regulatory News

    APRA Finalizes Changes to Capital Framework, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.

    November 03, 2022 WebPage Regulatory News

    BIS Hub and Central Banks Conduct CBDC and DeFI Pilots

    The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.

    November 03, 2022 WebPage Regulatory News

    FASB Proposes Improvements to 2023 GAAP Reporting Taxonomy

    The Financial Accounting Standards Board (FASB) is seeking comments, until November 03, 2022, on the proposed technical and other conforming improvements for the 2023 GAAP Financial Reporting Taxonomy.

    November 03, 2022 WebPage Regulatory News

    ECB Sets Deadline for Banks to Meet Its Climate Risk Expectations

    The European Central Bank (ECB) published the results of its thematic review, which shows that banks are still far from adequately managing climate and environmental risks.

    November 02, 2022 WebPage Regulatory News

    ESAs, ECB, & EC Issue Multiple Regulatory Updates for Financial Sector

    Among its recent publications, the European Banking Authority (EBA) published the final standards and guidelines on interest rate risk arising from non-trading book activities (IRRBB)

    October 31, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8588