Hong Kong Monetary Authority

Anti-Money Laundering

Banks Exercise Caution in Transition to AI-Based AML Systems

By Bradley Maclean | 20/08/2024

Participants at a recent Regulation Asia roundtable in Hong Kong expressed caution, but also optimism, about the use of AI for AML purposes.

Capital Adequacy

HKMA Consults on Revisions to Based III SPM Module

By Editors | 20/08/2024

The revisions take into account changes to the capital standards that were gazetted in December 2023 as part of the implementation of the Basel III final package.

Credit Risk

HKMA to Create Taskforce to Handle Loan-related Complaints

By Sanday Chongo Kabange | 20/08/2024

The task force will handle complaints from SMEs that are being asked to repay their loans earlier than the agreed time.

AI Risk & Governance

HKMA Issues Guidance for Banks on Using Generative AI

By Sanday Chongo Kabange | 20/08/2024

The HKMA encourages banks to proactively explore the use of GenAI to enhance consumer protection and better tailor products to individual customers.

Structural Regulation

Hong Kong SFC Proposes to Abolish Mixed Media Offers

By Sanday Chongo Kabange | 19/08/2024

The SFC says MMOs have become “obsolete” since the introduction of the paperless listing and subscription regime in 2021.

Supervision & Enforcement

OJK, HKMA Sign MOU to Expand Cooperation in Banking Supervision

By Editors | 16/08/2024

Indonesia’s OJK said it hopes to establish a supervisory college with the HKMA and enhance staff capacities at both regulators.

Market Risk

HKMA Issues Supplementary Guidance on Market Risk, CVA Risk

By Sanday Chongo Kabange | 14/08/2024

The guidance clarifies that funding swaps should typically be assigned to the trading book unless designated as hedging instruments under hedge accounting.

AI Risk & Governance

HKMA Launches New GenAI Sandbox at Hong Kong Cyberport

By Sanday Chongo Kabange | 14/08/2024

HKMA CEO Eddie Yue said sandbox will empower banks to pilot their novel GenAI use cases within a risk-managed framework.

Market Risk

HKMA Proposes Revisions to Guidance on Fair Value Practices

By Manesh Samtani | 14/08/2024

The HKMA said the guidance is “especially important for positions without quoted prices in active markets or observable inputs to valuation, as well as less liquid positions.”