On Sep. 26, HKMA revised SPM modules and banking returns.
HKMA finalized the revisions to a number of supervisory policy manual (SPM) modules and banking returns, and issued them with respective completion instructions (CIs).
Revisions were mainly for implementing the Banking (exposure limits)(amendment) rules 2023 (BELAR) that are intended to come into effect on Jan. 1, 2025, #196408.
SPM module CR-L-4 Underwriting of securities: BELR.
SPM module CR-G-8 Large exposures and risk concentrations.
SPM module CR-G-9 Exposures to connected parties
Return of certificate of compliance MA(BS)1F(a) and MA(BS)1F(b).
Return of large exposures MA(BS)28.
Revisions
Give effect to HKMA’s responses to industry comments, e.g. to retain descriptions of internal aggregate intragroup exposure limit in CR-G-8 instead of relocating to CR-G-9.
Amend a disclosure-related item in the templates of MA(BS)1F(a) and MA(BS)1F(b).
As well as update relevant existing cross-references in the CIs of MA(BS)28 for alignment with the finalized BELAR and the revised SPM modules CR-G-8 and CR-G-9.
STET software for the banking returns will be available for downloading from HKMA's supervisory communication website in early Jan. 2025; reporting institutions should submit revised banking returns starting from reporting position as of Mar. 31, 2025.
Dec. 2024 Consequential Updates
On Dec. 13, 2024, HKMA issued five revised SPM modules as statutory guidelines.
Plus, CR-L-4Underwriting of securities: BELR; and LM-1Regulatory framework for supervision of liquidity risk; these five revised modules will take effect on Jan. 1, 2025.
They were updated to cater for the implementation of the Banking (exposure limits)(amendment) rules 2023 and Banking (liquidity) (amendment) rules 2023.
