HKMA announced that the quarterly countercyclical capital buffer (CCyB) ratio requirement remained unchanged at 1.0% for banks in Hong Kong. HKMA also issued the final revised templates and completion instructions of the Return of Capital Adequacy Ratio (Form MA(BS)3) and the Return of Assets and Liabilities (Form MA(BS)1). Key changes since the last version in use have been highlighted for ease of reference. Reporting institutions should submit the two revised returns to HKMA, via the STET system, starting from the position as of June 30, 2021. HKMA plans to issue a separate circular to inform the industry about the relevant revisions in respect of the Return of Leverage Ratio (Form MA(BS)27), the Return of Large Exposures (Form MA(BS)28), and the disclosure templates or tables.
Keywords: Asia Pacific, Hong Kong, Banking, Counterparty Credit Risk, Capital Adequacy Ratio, Reporting, Leverage Ratio, Basel, CCyB, Regulatory Capital, Large Exposures, Disclosures, HKMA
The finalization of the two sustainability disclosure standards—IFRS S1 and IFRS S2—is expected to be a significant step forward in the harmonization of sustainability disclosures worldwide.
Decentralized finance (DeFi) is expected to increase in prominence, finding traction in use cases such as lending, trading, and investing, without the intermediation of traditional financial institutions.
The Basel Committee on Banking Supervision (BCBS) published reports that assessed the overall implementation of the net stable funding ratio (NSFR) and the large exposures rules in the U.S.
At the global level, supervisory efforts are increasingly focused on addressing climate risks via better quality data and innovative use of technologies such as generative artificial intelligence (AI) and blockchain.
The finalization of the IFRS sustainability disclosure standards in late June 2023 has brought to the forefront the themes of the harmonization of sustainability disclosures
The European Banking Authority (EBA) recently issued several regulatory publications impacting the banking sector.
The Basel Committee on Banking Supervision (BCBS) launched a consultation on revisions to the core principles for effective banking supervision, with the comment period ending on October 06, 2023.
The U.S. banking agencies (FDIC, FED, and OCC) recently proposed rules implementing the final Basel III reforms, also known as the Basel III Endgame.
The Financial Stability Board (FSB) recently published the second annual progress report on the July 2021 roadmap to address climate-related financial risks.
The recognition of climate change as a systemic risk to the global economy has further intensified regulatory and supervisory focus on monitoring of the environmental, social, and governance (ESG) risks.