Banking (Capital) (Amendment) Rules 2022

Banking Policy Department Our Ref: B1/15C B9/75C 22 April 2022 The Chief Executive All Authorized Institutions Dear Sir/Madam, Banking (Capital) (Amendment) Rules 2022 I am writing to inform you that the Banking (Capital) (Amendment) Rules 2022 (“BCAR 2022”) were published in the Gazette today. The amendments contained in the BCAR 2022 are mainly to implement the capital standard set out in the document entitled Capital requirements for banks’ equity investments in funds issued by the Basel Committee on Banking Supervision. The capital standard introduced a hierarchy of three approaches with varying degrees of risk sensitivity for setting capital requirements for banks’ equity investments in funds. The BCAR 2022 also contain an amendment to designate the Hong Kong Export Credit Insurance Corporation as a domestic public sector entity for preferential risk-weighting treatments by locally incorporated authorized institutions. The BCAR 2022 will be tabled before the Legislative Council for negative vetting on 27 April 2022. Subject to the views of the Legislative Council, the subsidiary legislation should come into operation on 1 July 2022. We will inform you once the negative vetting process has been completed. Yours faithfully, Daryl Ho Executive Director (Banking Policy) cc: The Chairperson, The Hong Kong Association of Banks The Chairperson, The DTC Association FSTB (Attn: Mr Justin To)