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The following is issued on behalf of the Hong Kong Monetary Authority:
The Hong Kong Monetary Authority (HKMA) conducted a drill with banks on business continuity plans (BCPs) today (June 14).
The drill assumed that due to unexpected events, the headquarters or other important operating sites of banks in Central as well as the HKMA's office became inaccessible. Hence, banks and the HKMA need to simulate the activation of their BCPs and operate in their respective back-up offices.
The exercise sought to test the reliability and stability of the communications between the HKMA's and participating banks' back-up offices. At the same time, banks were required to submit situation reports to the HKMA's back-up office. The drill was organised by the HKMA and participated by 55 banks. To the extent that areas of enhancement are identified through the drill, the HKMA will follow up with the banks concerned.
The HKMA requires banks to have in place appropriate BCPs and to carry out periodic reviews and tests to ensure that the operation of their core business can continue under adverse circumstances, so as to minimise the impact on bank customers and the general public.
The Chief Executive of the HKMA, Mr Norman Chan, said, "Central is the hub of banking and financial operations in Hong Kong, and we do not want to see disruptions of the normal operation of banks. As the supervisory authority for banks in Hong Kong, the HKMA must ensure that banks have in place robust business continuity plans so that the core functions of the banking system can be maintained even in extreme circumstances, such as inaccessibility of offices in Central. Overall speaking, the drill was conducted smoothly and the activation of back-up offices and the various communication channels including email, telephone and fax functioned properly. We are satisfied with the outcome of the drill."
Ends/Saturday, June 14, 2014
Issued at HKT 11:52
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