Regulatory Alerts2013-09-25
Added · Updated
HKMA Supervisory Policy Manual LM-2 Section 8 Maintenance of Liquidity Cushion
The Hong Kong Monetary Authority issues this circular to mandate that authorized institutions implement Section 8 of Supervisory Policy Manual LM-2 regarding the maintenance of adequate liquidity cushions. Institutions are required to ensure their holdings of high-quality readily liquefiable assets meet stress test requirements by 31 March 2014 and must submit a progress survey to the regulator by 23 October 2013. This implementation aligns with Basel III standards while distinguishing the local liquidity cushion definition from the High Quality Liquid Assets used for the Liquidity Coverage Ratio.
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