Gazettal of Banking (Amendment) Ordinance 2018
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Under the Ordinance, the MA may require an AI to maintain, revise or implement a recovery plan, which should set out the measures that the AI can take to stabilise and restore its financial resources and viability in the event that it comes under severe stress. The Ordinance also changes the limitations on financial exposures incurred by AIs and empowers the MA to make rules for such limitations in the form of subsidiary legislation.
The Ordinance was enacted by the Legislative Council (LegCo) on January 24, 2018. The relevant provisions about recovery planning came into effect today upon gazettal, while those pertaining to exposure limits will commence operation on a date to be appointed by the Secretary for Financial Services and the Treasury pending the LegCo's passing of the regulations to be made under the Ordinance.
A government spokesperson said, "The recovery planning requirement and financial exposure limits established under the Ordinance for AIs are designed to comply with the latest international standards set by the Financial Stability Board and the Basel Committee on Banking Supervision. The Ordinance will bolster the resilience of our financial system and enhance Hong Kong's premier position as an international financial centre."
The Government, along with the Hong Kong Monetary Authority, will maintain close liaison with the industry and the relevant stakeholders in the formulation of the regulations.
Ends/Friday, February 2, 2018
Issued at HKT 17:01
Issued at HKT 17:01
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