just alvin
December 5, 2024 10:13
The Hong Kong Monetary Authority has launched a public consultation on proposed amendments to the Banking Ordinance to strengthen the regulatory framework and enhance banking stability.
The Hong Kong Monetary Authority (HKMA) has launched a public consultation on proposed amendments to its banking bylaws, according to the HKMA. The plan aims to respond to the changing banking regulatory environment and ensure that Hong Kong’s financial system remains robust and resilient.
Review Purpose
Taking into account rapid developments and international regulatory trends, the HKMA’s review focuses on updating the legal framework governing banking regulation in Hong Kong. The proposed improvements aim to better align local systems with international standards and address issues identified in past supervisory experience.
Key Focus Areas
The consultation highlights six priority areas deemed to require revision. This includes simplifying the three-tier banking system to a two-tier structure and strengthening information sharing between competent authorities to combat financial crime. The HKMA is also reviewing the Monetary Authority’s enforcement powers, with industry consultations already underway.
Proposed Amendment
A newly published consultation document outlines further proposals, including establishing a legal framework for the regulation of designated holding companies by local incorporation authorities (AIs). It also proposes to grant the Monetary Authority flexibility to engage skilled professionals to support regulatory tasks under the Banking Ordinance, along with various technical amendments.
Revision of related ordinances
Amendments were also proposed to two other ordinances related to the banking sector: the Financial Institutions (Resolutions) Ordinance and the Hong Kong Bankers’ Association Ordinance. These changes aim to strengthen the overall regulatory environment and ensure comprehensive supervision.
Counseling process
The public consultation will open on 5 December 2024 and run until 28 January 2025. Stakeholders are encouraged to review the consultation document available on the HKMA website and submit feedback via email or post.
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