Postponement of 2020 Supervisor-Driven Stress Test

Our Ref: B1/15C 22 April 2020 The Chief Executive All Locally Incorporated Licensed Banks Dear Sir / Madam, Postponement of 2020 Supervisor-Driven Stress Test I am writing to inform you that the Hong Kong Monetary Authority (“HKMA”) has decided to postpone the 2020 Supervisor-Driven Stress Test (“SDST”) to 2021. Since the outbreak of Covid-19, banks have taken prompt actions to assess the potential impact of the outbreak on their financial positions. To provide additional operational capacity for banks to respond to the challenges brought by the outbreak and to continue to support their customers, the HKMA has decided to postpone the 2020 SDST by one year. In making this decision, the HKMA has taken into consideration the current capital levels of banks and the satisfactory results of earlier stress tests. Should you have any questions about this letter, please contact Mr Qi Li on 2878-1503. Yours faithfully, Raymond Chan Executive Director (Banking Supervision)