Regulatory Alerts2024-09-26
Added · Updated
Exposures to Connected Parties
The document specifies systems and controls that locally incorporated Authorized Institutions (AIs) must implement to identify, measure, monitor, and control exposures to connected parties. It mandates compliance with statutory limits under the Banking (Exposure Limits) Rules, including an aggregate connected parties exposure ratio not exceeding 15%, an aggregate connected natural persons exposure ratio not exceeding 5%, and an aggregate single connected party exposure to each connected natural person not exceeding HK$10 million. AIs are required to establish robust internal policies, ensure Board oversight, and treat connected party transactions on an arm's length basis with terms no more favorable than those for non-connected parties.
More like this from HKMA
HKMA published 11 documents in the last 30 days. We email you each new one the day it's published.