Basel III in Hong Kong

This comment piece outlines the key requirements for AI’s implementing Basel III in Hong Kong

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Implementation of Basel III in Hong Kong

Hong Kong Monetary Authority (HKMA) issued the circular to all AIs regarding the announcement on 13th January 2011 made by the Basel Committee on Banking Supervision (BCBS) that set out the final element of the new regulatory capital requirements, namely the minimum requirements to ensure loss absorbency at the point of non-viability.

Also the recent financial crisis and market developments showcased the weaknesses in some of the underlying principles of MiFID and highlighted the need for reinforcement or revision.

HKMA will support the objective of the Basel III reform package to strengthen the resilience of the banking sector against cyclical economic shocks and fully implement the reform package in Hong Kong.

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