Regulatory Alerts2020-05-25
Added · Updated
Clarifications on the treatment of extraordinary support measures related to Covid-19
The Hong Kong Monetary Authority issued clarifications on the risk-based capital treatment of loans subject to government guarantees and payment holidays during the Covid-19 outbreak. Authorized Institutions may exclude payment holiday periods from past due calculations and must not automatically classify such loans as rescheduled or unlikely to pay in full. These measures align with Basel Committee guidelines to ensure regulatory reporting accurately reflects asset quality without penalizing temporary relief measures.