Code of Practice chapters regarding valuation in resolution issued under FIRO

HONG KONG MONETARY AUTHORITY 香港金融管理局 Resolution Office Our Ref: B9/213/8C-260724 24 July 2026 The Chief Executive All Authorized Institutions Dear Sir / Madam, 處置機制辦公室 Code of Practice chapters regarding valuation in resolution issued under the Financial Institutions (Resolution) Ordinance (Cap. 628) ("FIRO") I am writing to inform you that, following consultation with the indust塄, today the Moneta鑼 Authority ("MA") is issuing VIR- 1 "The HKMA 's Approach to Valuation in Resolution" and VIR-2 "Valuation in Resolution Capabilities", two new chapters of the Code of Practice, pursuant to section 196 of the FIRO. The chapter VIR- 1 outlines the valuations required under the FIRO and sets out how the valuations are generally anticipated to be carried out, including the methodologies, process and output. The chapter VIR-2 provides guidance on the capabilities and arrangements an authorized institution should put in place to support timely and robust valuation in resolution, as well as the MA's approach to implementation. Comments received during the industry consultation have been incorporated as appropriate Separately, as part of a periodic review, the MA is issuing an updated version of RA-1 "Operational Independence of the Monetary Authority as Resolution Authority". The changes are housekeeping in nature, including updating outdated information, aligning the format with recent Code of Practice chapters, and fine-tuning the bilingual translation On-line access to these chapters is available on the HKMA's public website (https : //brdr.hksria. gov. hkleng/cop) and Supervisory Communication Website (https ://brdr. stet. iclnet.hk/eng/cop). 55th Floor, Two International Finance Centre 8 Finance Street, Central, Hong Kong Website: www.hkma.gov.hk 香港中環金融街8 號國際金融中心2 期55 樓 網址：www.hkma.gov.hk

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