On Apr. 8, HKMA proposed to revise bank disclosure guidelines.
HKMA issued consultation paper proposing amendments to SPM module CA-D-1, Guideline on the application of the banking (disclosure) rules (BDR), version 4.0.
Plus standard disclosure templates/table re Basel III final package implementation.
Follows HK GVT Dec. 2023 gazetted rules regarding Basel III final package, #196408.
Also follows HKMA Aug. 2019 guideline on banking disclosure rules, see #63973.
Provides examples of the first reporting period subject to the new quarterly, semi-annual or annual disclosure requirements for AIs with different financial year-ends.
Authorized institutions (AI) must establish a clearly documented disclosure policy.
Disclosure policy should be subject to regular and independent review and approval by AI’s senior management and board of directors pursuant to section 5(b) of the BDR.
For web-based disclosure, an internet website can be owned/maintained by AI or AI’s holding company subject to approval of HKMA; disclosure statements clearly displayed.
AIs shall observe the materiality concept as set out in Hong Kong financial reporting standards (HKFRS) and HKFRS practice statement 2, re materiality information.
Added credit valuation adjustment (CVA) risk as part of the basis of disclosure.
Disclosure Templates
Proposed to revise table on main features of regulatory capital instruments/template on main features of regulatory capital instruments/ non-capital LAC debt instruments.
LAC debt instruments are also referred to as loss-absorbing capacity debt instruments.
Consultation End
Consultation is open for opinions which shall be submitted by May 7, 2024.
Aug. 2024 Finalized Guidelines
On Aug. 6, 2024, HKMA finalized the revisions to SPM module CA-D-1 Guideline on the application of the banking (disclosure) rules, planned effectiveness from Jan. 1, 2025.
HKMA intends to issue the revised SPM module when the relevant legislative process to bring into effect the Banking (disclosure) (amendments) rules 2023 has completed.
Document dated Aug. 6, 2024, received from HKMA Aug. 8, summarized on Aug. 9.
In Oct. 2024, HKMA revised standard LAC disclosure template, see #230890.
Dec. 2024 Issued Guidelines
On Dec. 5, 2024, HKMA issued the revised SPM module CA-D-1 Guideline on the application of the banking (disclosure) rules which incorporates updates to cater for the implementation of the Banking (disclosure) (amendments) rules 2023 (BDAR).
The revised SPM module will take effect on the same date as BDAR on Jan. 1, 2025.
