Capacity Building for Future Banking, 2026-2030

55th Floor, Two International Finance Centre, 香 港 中 環 金 融 街 8 號 國 際 金 融 中 心 2 期 55 樓 8 Finance Street, Central, Hong Kong 網 址：www.hkma.gov.hk Website: www.hkma.gov.hk Our Ref.: B9/183C 18 August 2025 The Chief Executive All Authorized Institutions Dear Sir/Madam, Capacity Building for Future Banking, 2026 – 2030 I am writing to bring to your attention an industry-wide study titled “Capacity Building for Future Banking, 2026-2030” (Annex) published today and call for your actions in furthering the industry’s efforts in capacity building. Key Findings and Recommendations of the Study The study is conducted jointly by the Hong Kong Monetary Authority (HKMA), the Hong Kong Association of Banks and the Hong Kong Institute of Bankers. It is a sequel to a previous study covering the period from 2021 to 2025 that was published in June 20201 . The latest study, based on survey responses from the banking industry and discussions with relevant stakeholders, has the following key findings:  a number of skills are expected to be in most demand in view of the fast evolving business landscape and technological advancements. These include: (i) specialist technical expertise in artificial intelligence, data analytics and governance, and cybersecurity; (ii) human-machine interaction and human-centric soft skills (e.g. creativity and cross-cultural relationship building); and (iii) banking knowledge on sustainable-finance related risk management, emerging markets and new regulatory compliance;

1 The HKMA circular on “Capacity Building for Future Banking” dated 18 June 2020: https://www.hkma.gov.hk/media/eng/doc/key-information/guidelines-and￾circular/2020/20200618e1.pdf

• 2 -  it is important to develop well-rounded banking professionals that are adaptive to the changing construct of banking operations, while addressing specific skill requirements through tailored but augmentable training programmes; and  a collaborative approach needs to be taken to advancing the industry’s efforts in capacity building, through working together to advocate for local professional training and qualifications, synergise reskilling and upskilling and commit to continuous learning, among others. Call for Actions The HKMA’s Supervisory Policy Manual module CG-6 on “Competence and Ethical Behaviour” has set out the expectations for authorized institutions to develop the professional competence of their staff and equip them with up-to￾date skills and knowledge. These include, but not limited to, regularly assessing the impact of technological advancements and changes in customer expectations in a forward-looking manner, and putting in place effective reskilling plans and strategies. Having regard to the findings of the latest study, authorized institutions are expected to consider how, and take timely actions, to adjust and enhance their:  training and reskilling plans and strategies in light of the evolving circumstances;  training support to staff, especially in facilitating staff to learn new skills and to adapt to new roles as necessary; and  use of internal and external training programmes, and participation in the industry’s capacity building initiatives, to better achieve their anticipated training needs. For locally incorporated licensed banks, they should arrange for their boards to consider and assess the effectiveness of their related assessments and plans in relation to upskilling and reskilling of staff on a regular basis. The HKMA will regularly evaluate the performance of individual banks in this regard and follow up with them as necessary.

• 3 - Taking this opportunity, I would like to thank the banking industry for devoting efforts to this joint exercise. If you have any questions on this circular or the paper, please feel free to contact Ms Denise Tai at 2878 1589 or Mr Kevin Cheung at 2878 1573. Yours faithfully, Arthur Yuen Deputy Chief Executive Encl. c.c. The Chairperson, The Hong Kong Association of Banks The Chairperson, The DTC Association The Chairperson, The Hong Kong Institute of Bankers