Regulatory Alerts2018-03-26
Added · Updated
Implementation guidance on securitization framework under Banking (Capital) Rules
The Hong Kong Monetary Authority issues this guidance to clarify the application of Part 7 of the Banking (Capital) Rules regarding the definition, eligibility, and capital treatment of securitization transactions. It establishes specific criteria for recognizing significant credit risk transfer, including mandatory self-assessment procedures and notification requirements for originating authorized institutions. The document further details supervisory expectations for identifying implicit support, assessing effective control, and classifying underlying exposures to ensure prudent risk management and capital adequacy.