Revised Supervisory Policy Manual Module CA-G-1 on Overview of Capital Adequacy Regime for Locally Incorporated Authorized Institutions

Banking Policy Department Our Ref: S4/3C B1/15C B1/21C 29 November 2024 The Chief Executive All Locally Incorporated Authorized Institutions Dear Sir/Madam, Revised Supervisory Policy Manual (SPM) Module CA-G-1 on “Overview of Capital Adequacy Regime for Locally Incorporated Authorized Institutions” I am writing to inform you that, following consultation with the two industry Associations, the Monetary Authority is issuing by notice in the Gazette today a revised version of the SPM module CA-G-1 “Overview of Capital Adequacy Regime for Locally Incorporated Authorized Institutions” as a statutory guideline under section 7(3) of the Banking Ordinance. The revised module will be effective on 1 January 2025. The changes incorporated are to align the module with the latest capital standards (primarily those under the Basel III final reform package as set out in the Banking (Capital) (Amendment) Rules 2023), and to improve the clarity or better reflect the policy intent of certain guidance in it. On-line access to the revised module is available at the HKMA’s public website1 and the Supervisory Communication Website2 . Should you have any questions regarding the above, please contact Mr Andy Cheung at 2878 1022 or Ms Christine Wu at 2878 1996. Yours faithfully, Donald Chen Executive Director (Banking Policy) Encl cc: The Chairperson, The Hong Kong Association of Banks The Chairperson, The DTC Association FSTB (Attn: Mr Justin To) 1 https://www.hkma.gov.hk/eng/regulatory-resources/regulatory-guides/supervisory-policy-manual/ 2 http://www.stet.iclnet.hk