Regulatory Alerts2020-11-30
Added · Updated
Capital treatment of securitisations of non-performing loans
The Hong Kong Monetary Authority issued this circular to establish the capital treatment for securitizations of non-performing loans. The document addresses capital adequacy requirements for credit risk and provides guidance on loan classification and provisioning for locally incorporated authorized institutions. It serves as a regulatory update to align prudential standards with the specific risks associated with problem asset securitizations.