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
    News

    BCBS Amends Capital Treatment of Non-Performing Loan Securitizations

    BCBS published a technical amendment to the capital treatment of securitizations of non-performing loans by banks.

    November 26, 2020 WebPage Regulatory News
    News

    BoE to Move Statistical Data Collection to BEEDs Portal

    BoE announced that the Data and Statistics Division is planning to move collection of statistical data to the BoE Electronic Data Submission (BEEDS) portal.

    November 25, 2020 WebPage Regulatory News
    News

    APRA Updates Reporting Standards and Guidance for EFS Data Collection

    APRA published the updated reporting standards and guidance for the collection of Economic and Financial Statistics (EFS), following a consultation process. Also published was a response letter to the feedback received on the proposal for amending the EFS reporting standards and guidance.

    November 24, 2020 WebPage Regulatory News
    News

    EC Consults on Criteria for Environmentally Sustainable Activities

    EC is consulting on a draft delegated regulation to supplement the Taxonomy Regulation (2020/852) by establishing the technical screening criteria for determining the conditions under which an economic activity qualifies as environmentally sustainable.

    November 20, 2020 WebPage Regulatory News
    News

    IFRS Examines Incorporation of Climate Risk Issues into IFRS Standards

    The IFRS Foundation published material highlighting the ways in which existing requirements in IFRS standards require companies to consider climate-related matters when their effect is material to the financial statements.

    November 20, 2020 WebPage Regulatory News
    News

    EBA Analyzes Impact of Unwind Mechanism of Liquidity Coverage Ratio

    EBA published a report analyzing the impact of the unwind mechanism of the liquidity coverage ratio (LCR) for a sample of European banks over a three-year period, from the end of 2016 to the first quarter of 2020.

    November 19, 2020 WebPage Regulatory News
    News

    ECB Outlines Views on Possible Changes to AnaCredit Rule and TLTROs

    In response to questions from a member of the European Parliament, the ECB President Christine Lagarde issued a letter clarifying the possibility of amending the AnaCredit Regulation and making targeted longer-term refinancing operations (TLTROs) dependent on the climate-related impact of bank loans.

    November 19, 2020 WebPage Regulatory News
    News

    IASB Begins First Phase of Post-Implementation Review of IFRS 9

    IASB started the post-implementation review of the classification and measurement requirements in IFRS 9 on financial instruments and added the review as a project to its work plan.

    November 18, 2020 WebPage Regulatory News
    News

    FSB Report Examines Progress in Resolvability of Systemic Institutions

    FSB published a report that examines progress in implementing policy measures to enhance the resolvability of systemically important financial institutions.

    November 18, 2020 WebPage Regulatory News
    News

    EBA Benchmarks National Insolvency Frameworks Across EU

    EBA published a report on the benchmarking of national loan enforcement frameworks across 27 EU member states, in response to the call for advice from EC.

    November 18, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 6162