HONG KONG MONETARY AUTHORITY

    Capital / Liquidity

    HKMA Support Measures and the Impact to the Banking Industry

    By Pierre Latrobe | 12/05/2020

    Pierre Latrobe at Mazars discusses recent HKMA initiatives taken in response to Covid-19 and their implications for Hong Kong banks, highlighting credit risk as a growing threat.

    Big Picture

    Regulatory Initiatives to Address Culture & Conduct Risk in Banking

    By Editors | 11/05/2020

    In its latest annual Compendium, Starling draws on survey findings and commentary from regulators to identify ten culture and conduct trends in the banking sector.

    Market Infrastructure

    HKMA Proposes Mandatory Reference Checks to Stop Rolling Bad Apples

    By Manesh Samtani | 08/05/2020

    Under the scheme, prospective employees would be required to disclose employment records to recruiting AIs before a new employment relationship is established.

    Enforcement

    SFC Fines Mega International Commercial Bank Over Sales Practices

    By Editors | 07/05/2020

    Mega did not properly assess clients’ investment objectives, risk tolerance levels and knowledge of derivatives, or ensure the suitability of its fund recommendations for clients.

    Hong Kong Set to Commence Fixed-rate Mortgage Pilot

    By Editors | 06/05/2020

    Under the six-month pilot scheme, participating banks will offer fixed-rate mortgage loans, capped at HK$10mn per loan transaction, and subject to a total aggregate cap of HK$1bn.

    Market Infrastructure

    HK Regulators Establish Green and Sustainable Finance Steering Group

    By Editors | 05/05/2020

    Initiated by the HKMA and SFC, the Steering Group will coordinate across other agencies and sectors to position Hong Kong as a global leader in green and sustainable finance.

    Hong Kong Records Higher Negative Equity Mortgage Loans

    By Editors | 30/04/2020

    The negative equity loans are related to housing loans provided to bank staff or under mortgage insurance programmes, which tend to have higher loan-to-value ratios.

    AML / KYC

    Digital Identification in a Post-COVID World

    By Editors | 28/04/2020

    Social distancing has put KYC into sharp focus, with regulators reiterating their support for digital onboarding to ensure financial transactions are possible.

    Capital / Liquidity

    Hong Kong Gazettes Banking Rule Amendments to Implement SA-CCR

    By Editors | 25/04/2020

    The final Basel III standards on SA-CCR and on capital requirements for CCP exposures will come into operation in Hong Kong on 30 June 2021, subject to negative vetting.

    Market Infrastructure

    HKMA Survey Highlights LIBOR Transition Challenges

    By Editors | 23/04/2020

    About HK$1.4tr in assets, HK$0.5tr in liabilities, and HK$14.7tr in derivatives still referencing LIBOR will mature after end-2021 and don’t have fallbacks in place.

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