*****************************************************
The Banking (Disclosure) (Amendment) Rules 2013 will be gazetted on Friday (April 12) to introduce revised disclosure requirements for locally incorporated authorised institutions corresponding to the revised capital standards, which came into effect on January 1, 2013, in the first phase of the implementation of Basel III.
The new Basel III capital framework is designed to increase the level, quality and transparency of banks' capital base and to extend the risk coverage of the regulatory capital framework. In essence, the new disclosure standards require a detailed breakdown of the constituents of banks' regulatory capital base and reconciliation of all regulatory capital elements to banks' audited financial statements.
Also gazetted are the Banking (Capital) (Amendment) Rules 2013, which are primarily technical refinements to align the new capital rules with the latest guidance from the Basel Committee on Banking Supervision issued in December 2012.
"The implementation of the Basel III framework should enhance the resilience of Hong Kong's banks and banking system. Timely implementation underpins Hong Kong's status as a major international banking and financial centre, and keeps Hong Kong in line with the latest international regulatory standards," a spokesperson for the Financial Services and the Treasury Bureau said.
"We have engaged closely with the banking sector, through consultation, while formulating the new disclosure standards and refinements to the capital rules. We will continue to consult the sector as we roll out the subsequent phases of the Basel III standards," a spokesperson for the Hong Kong Monetary Authority said.
The two sets of subsidiary legislation will be tabled before the Legislative Council at its sitting of April 17, 2013, for negative vetting, with a view to commencing operation on June 30, 2013.
Ends/Wednesday, April 10, 2013
Issued at HKT 15:30
NNNN
