Regulatory Alerts2026-08-07
Added
HKMA Liquidity Facilities Framework: Settlement and Contingent Term Facility Collateral Haircuts
The document specifies collateral asset method haircuts for the Exchange Fund Bills and Notes Repo, Standby Liquidity Facilities, and Contingent Term Facility. It mandates a 2% annual haircut for Exchange Fund Bills and Notes, a minimum 2.5% haircut for cash and Hong Kong Government Bonds, and minimum haircuts of 3% and 7% for high-quality liquid securities and other investment grade securities, respectively. For the Contingent Term Facility, residential mortgages under the Home Ownership Scheme or Private Sector Participation Scheme require a minimum 2.5% haircut, while other acceptable loans have haircuts determined by the HKMA on a case-by-case basis.
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