Regulatory Alerts2019-06-28
Added · Updated
Banking (Liquidity) (Amendment) Rules 2019
The Hong Kong Monetary Authority issued the Banking (Liquidity) (Amendment) Rules 2019 to expand the scope of level 2B and liquefiable assets under liquidity coverage and maintenance ratios. The rules also implement a required stable funding requirement on total derivative liabilities under the net stable funding and core funding ratios. These amendments are scheduled to come into operation on 1 January 2020, subject to negative vetting by the Legislative Council.
Banking Policy Department Our Ref: B1/15C B9/155C S4/16C 28 June 2019 The Chief Executive All Authorized Institutions Dear Sir / Madam, Banking (Liquidity) (Amendment) Rules 2019 I am writing to inform you that the Banking (Liquidity) (Amendment) Rules 2019 (“BLAR”) were published in the Gazette today. The main purposes of the BLAR are to (i) expand the scope of “level 2B assets” and “liquefiable assets” under the Liquidity Coverage Ratio and the Liquidity Maintenance Ratio respectively; and (ii) implement a “required stable funding” requirement on total derivative liabilities under the Net Stable Funding Ratio and the Core Funding Ratio. Subject to the negative vetting by the Legislative Council, the BLAR shall come into operation on 1 January 2020.
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 Chairman, The DTC Association FSTB (Attn: Ms Eureka Cheung)
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