Regulatory Alerts2026-08-28
Added · Updated
Consultation on Revised SPM Module CA-B-2 Systemically Important Banks
This consultation document proposes revisions to the Supervisory Policy Manual module CA-B-2, outlining the MA's framework for identifying systemically important authorized institutions (AIs) in Hong Kong. It details the assessment methodology for designating Domestic Systemically Important Banks (D-SIBs) and Global Systemically Important Banks (G-SIBs), and for calibrating higher loss absorbency (HLA) capital requirements for locally incorporated AIs. The methodology combines a quantitative assessment, weighted 40% for size, 25% for interconnectedness, 25% for substitutability/financial institution infrastructure, and 10% for complexity, with a supervisory judgement overlay. This framework applies to all AIs, with licensed banks automatically assessed, and restricted licence banks and deposit-taking companies included on a case-by-case basis, while foreign bank branches may face intensified supervision without local HLA requirements.
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