Regulatory Alerts2020-04-08
Added · Updated
HKMA Lowers Regulatory Reserve Requirement for Locally Incorporated Authorized Institutions
The Hong Kong Monetary Authority has decided to lower the regulatory reserve requirement for locally incorporated authorized institutions by 50% with immediate effect. This reduction aims to provide banks with greater lending headroom to support customers affected by the COVID-19 outbreak, as the initial need for the reserve has diminished following two years of robust HKFRS 9 implementation. The regulator strongly encourages institutions to utilize the released funds for customer support rather than for dividend distributions, share buybacks, or senior management bonuses.