Rules on Basel III final package and related updates

Banking Policy Department Our Ref: B1/15C B9/75C, B9/151C B9/155C, B9/188C 8 February 2024 The Chief Executive All Authorized Institutions Dear Sir/Madam, Rules on Basel III final package and related updates Further to our letter of 29 December 2023, I write to inform you that the 28-day period for the negative vetting of the following rules by the Legislative Council has expired without extension: The Banking (Capital) (Amendment) Rules 2023 (“BCAR”); The Banking (Disclosure) (Amendment) Rules 2023 (“BDAR”); The Banking (Exposure Limits) (Amendment) Rules 2023 (“BELAR”); and The Banking (Liquidity) (Amendment) Rules 2023 (“BLAR”). As mentioned in the letter, the rules will come into operation on the following dates: • for the provisions of the rules that are not associated with the Basel III final package, those in the BCAR (including provisions for introducing the option of a positive neutral countercyclical capital buffer), and those in the BELAR that are considered significant to ensuring the effective operation of the rules, 1 April 2024; and • for the other provisions of the BCAR and the BELAR, as well as the BDAR and the BLAR, a date to be appointed by the Monetary Authority by notice published in the Gazette, which is currently intended to be 1 January 2025. Yours faithfully, Donald Chen Executive Director (Banking Policy) cc: The Chairperson, The Hong Kong Association of Banks The Chairperson, The DTC Association FSTB (Attn: Mr Justin To)