Regulatory Alerts2020-04-08
Added · Updated
Mechanism for calculating reduction in Regulatory Reserve and adjustment to target rate of benchmark regulatory provision
The Hong Kong Monetary Authority issued this circular on April 8, 2020, to establish a mechanism for calculating reductions in Regulatory Reserve and adjusting the target rate of benchmark regulatory provision. This guidance addresses capital adequacy and loan provisioning requirements specifically in response to the challenges posed by the Covid-19 pandemic. It applies to locally incorporated authorized institutions to ensure appropriate capital buffers during the crisis.