Regulatory Alerts2019-08-26
Added · Updated
HKMA Liquidity Facilities Framework for Banks
The Hong Kong Monetary Authority issued this framework to restate and refine its liquidity provision mechanisms for licensed banks, restricted licence banks, and deposit-taking companies. The document outlines four distinct facilities: Settlement Facilities for daily payment system stability, Standby Liquidity Facilities for managing unexpected tightness, a Contingent Term Facility for extraordinary stress, and a new Resolution Facility for banks undergoing resolution under the Financial Institutions (Resolution) Ordinance. All facilities operate within the Linked Exchange Rate System and require adequate collateral, with the HKMA retaining discretion to adapt terms and maintain confidentiality regarding specific usage.
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