Regulatory Alerts2024-10-24
Added · Updated
Revised Standard LAC Disclosure Template and Updated Code of Practice Chapter LAC-1 Resolution Planning
The Hong Kong Monetary Authority issues this Code of Practice chapter to provide guidance on the exercise of discretionary powers under the Loss-absorbing Capacity Rules for authorized institutions. The document establishes a risk-based framework for resolution planning, setting asset thresholds of HK$150 billion for strategy development and HK$300 billion for LAC requirements. It details the operational mechanics for classifying entities, calculating LAC ratios, and mandating specific quarterly and semi-annual disclosure obligations to ensure financial stability.
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