Regulatory Alerts2026-07-24
Added · Updated
The HKMA's Approach to Valuation in Resolution
This Code of Practice chapter mandates that authorized institutions and their holding or affiliated entities develop capabilities to support the Monetary Authority’s valuation of failing institutions under the Financial Institutions (Resolution) Ordinance. It requires the execution of pre-resolution valuations to inform stabilization decisions and post-resolution valuations to determine compensation eligibility under the no creditor worse off than in liquidation safeguard. The guidance specifies valuation methodologies, appointment criteria for independent valuers, and procedural requirements for group-wide resolution scenarios.
Topics
Share