Regulatory Alerts2026-08-07
Added
HKMA Liquidity Facilities Framework for Banks: Operational Note
Liquidity facilities are available from the Hong Kong Monetary Authority (HKMA) for licensed banks, restricted licence banks, and deposit-taking companies, encompassing Settlement Facilities, Standby Liquidity Facilities, Contingent Term Facility, and Resolution Facility. For Settlement Facilities, banks may use Exchange Fund Paper as collateral with a 2% haircut per year of remaining maturity. Standby Liquidity Facilities accept various securities and cash, with minimum haircuts ranging from 2.5% to 7%, while Contingent Term and Resolution Facilities also accept residential mortgages with haircuts from 2.5% for HOS/PSPS mortgages, 6% for HKMC compliant mortgages, and 8% for other residential mortgages. The Annex, which details eligible collateral and haircuts for these facilities, was last updated on 7 August 2026.