Regulatory Alerts2025-02-28
Added · Updated
Climate Risk Stress Test 2.0
The Hong Kong Monetary Authority issued the results of the second round of sector-wide Climate Risk Stress Test, which involved 46 authorized institutions representing over 90% of the banking sector's lending. The assessment demonstrates that the sector maintains strong resilience against severe climate-related shocks, with stressed capital ratios remaining well above the 8% international minimum requirement across all scenarios. The regulator encourages all institutions to review the attached report for insights on enhancing climate risk management and notes plans to optimize the integration of climate risks into its supervisory stress testing framework.