Regulatory Alerts2025-11-27
Added · Updated
Regulatory Framework for Supervision of Liquidity Risk
The Monetary Authority of Hong Kong issues this statutory guideline to establish the supervisory framework for managing liquidity risk among all authorized institutions. The document mandates compliance with specific statutory liquidity ratios, including the Liquidity Coverage Ratio and Net Stable Funding Ratio for category 1 institutions, and the Liquidity Maintenance Ratio and Core Funding Ratio for category 2 institutions. It further details the risk-based supervisory approach, calculation bases for liquidity metrics, and requirements for internal controls and reporting to ensure banking system resilience.
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