Regulatory Alerts2021-06-25
Added · Updated
Financial Institutions (Resolution) (Contractual Recognition of Suspension of Termination Rights—Banking Sector) Rules
The Hong Kong Monetary Authority issued these rules to implement the contractual recognition of suspension of termination rights within the banking sector. The regulations require authorized institutions to incorporate specific contractual terms that allow for the suspension of termination rights during resolution proceedings. This measure supports financial stability by ensuring that critical contracts remain intact to facilitate the orderly resolution of failing financial institutions.
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