HKMA informed the authorized institutions that negative vetting, by the Legislative Council, of the Banking (Capital) (Amendment) Rules 2020 (BCAR) has now expired. The BCAR 2020 will come into operation on June 30, 2021. BCAR 2020 has been published in the Hong Kong Gazette. The amendments in the BCAR 2020 are intended to implement the two BCBS-issued capital standards for treatment of banks' counterparty credit risk exposures to derivatives trades. These standards involve the standardized approach for measuring counterparty credit risk exposures (SA-CCR) and the capital requirements for bank exposures to central counterparties. These standards form a part of the Basel III reform package.
Effective Date: June 30, 2021
Keywords: Asia Pacific, Hong Kong, Banking, BCAR, Basel III, Regulatory Capital, Negative Vetting, Counterparty Credit Risk, SA CCR, Standardized Approach, BCBS, HKMA
APRA has concluded its review of the comprehensive plans of authorized deposit-taking institutions for the assessment and management of loans with repayment deferrals.
ESAs (EBA, EIOPA, and ESMA) published the first joint report that assesses risks in the financial sector since the outbreak of the COVID-19 pandemic.
BoE and HM Treasury confirmed that the COVID Corporate Financing Facility (CCFF) will close for new purchases of commercial paper, with effect from March 23, 2021.
ECB published a decision allowing the euro area banks under its direct supervision to exclude certain central bank exposures from the leverage ratio.
ESAs launched a survey seeking feedback on the presentational aspects of product templates under the Sustainable Finance Disclosure Regulation (SFDR or Regulation 2019/2088).
ECB published input of the European System of Central Banks (ESCB) into the EBA feasibility report on reducing the reporting burden for banks in EU.
EC adopted a decision determining, for a limited period of time, that the regulatory framework applicable to central counterparties, or CCPs, in the UK and Northern Ireland is equivalent to the requirements laid down in the European Market Infrastructure Regulation (EMIR or Regulation 648/2012).
EBA has decided to phase out the guidelines on legislative and non-legislative moratoria of loan repayments, in accordance with the earlier specified end of September deadline.
EBA published an Opinion addressed to EC to raise awareness about the opportunity to clarify certain issues related to the definition of credit institution in the upcoming review of the Capital Requirements Directive and Regulation (CRD and CRR).
ECB finalized the guide on assessment methodology for the internal model method for calculating exposure to counterparty credit risk (CCR) and the advanced method for own funds requirements for credit valuation adjustment (A-CVA) risk.