Banking (Liquidity) (Amendment) Rules 2019

Banking Policy Department
Our Ref: B1/15C
B9/155C
S4/16C
S4/16/1C
15 November 2019
The Chief Executive
All Authorized Institutions
Dear Sir / Madam,
Banking (Liquidity) (Amendment) Rules 2019
Further to our letter of 28 June 2019, I write to inform you that the negative vetting by the Legislative Council of the Banking (Liquidity) (Amendment) Rules 2019 (“BLAR”) has now expired. As a result, the BLAR will come into operation on 1 January 2020. The main changes to the Banking (Liquidity) Rules are to (i) recognize Basel-compliant listed ordinary shares and triple-B rated marketable debt securities as “level 2B assets” and “liquefiable assets” under the Liquidity Coverage Ratio and the Liquidity Maintenance Ratio respectively; and (ii) implement a required funding requirement on total derivative liabilities under the Net Stable Funding Ratio and the Core Funding Ratio. Yours faithfully, Daryl Ho Executive Director (Banking Policy) cc: The Chairperson, The Hong Kong Association of Banks The Chairman, The DTC Association FSTB (Attn: Ms Eureka Cheung)