Implementation of Basel III in
Hong Kong
The Basel Committee on Banking Supervision (BCBS), of which the HKMA is a member, develops guidelines and supervisory standards to enhance understanding of key supervisory issues and improve the quality of banking supervision worldwide. A key element of the BCBS' work is Basel II, a global regulatory standard on bank capital adequacy, which was implemented in Hong Kong on 1 January 2007. Following the release of the enhancements to Basel II in July 2009, the BCBS issued the Basel III package introducing further reforms to the Basel II capital adequacy framework and new standards for bank funding liquidity in December 2010. The objective of Basel III is to improve the banking sector's ability to absorb shocks arising from financial and economic stress in the future.
The BCBS expects its member jurisdictions to begin the implementation of Basel III from 1 January 2013 in phases, with full implementation by 1 January 2019. It is HKMA's current intention to implement Basel III in Hong Kong in accordance with the BCBS' timetable, including the transitional arrangements.
Basel III
Basel Committee's Papers
- A framework for dealing with domestic systemically important banks (PDF File, 94.7KB)
- Globally systemically important banks: updated assessment methodology and the higher loss absorbency requirement (PDF File, 185KB)
- Composition of capital disclosure requirements (PDF File, 214KB)
- Minimum requirements to ensure loss absorbency at the point of non-viability (PDF File, 28KB)
- Capital requirements for bank exposures to central counterparties (PDF File, 132KB)
- Basel III: A global regulatory framework for more resilient banks and banking systems (PDF File, 474KB)
- Basel III: International framework for liquidity risk measurement, standards and monitoring (PDF File, 352KB)
- Guidance for national authorities operating the countercyclical capital buffer (PDF File, 360KB)
Basel II Enhancements (Effective from 1 January 2012)
Basel Committee's Papers
- Interpretive issues with respect to the revisions to the market risk framework (PDF File, 92KB)
- Revisions to the Basel II market risk framework - updated as of 31 December 2010 (PDF File, 322KB)
- Changes to the Revisions to the Basel II market risk framework (PDF File, 26KB)
- Guidelines for computing capital for incremental risk in the trading book (PDF File, 72KB)
- Revisions to the Basel II market risk framework (PDF File, 169KB)
- Enhancements to the Basel II framework (PDF File, 188KB)
Basel II (Effective from 1 January 2007)
"Supervisory Review Process" under Pillar 2 (PDF File, 691KB)
Briefings to the Panel on Financial Affairs of the Legislative Council
- 4 June 2012 - Progress in Implementation of Basel III Standards in Hong Kong (PDF File, 671KB)
- 9 June 2011 - Progress of Implementation of Basel II Enhancements and Plan to Implement Basel III (PDF File, 263KB)
- 4 May 2006 - Development of Capital and Disclosure Rules to be Made under the Banking (Amendment) Ordinance 2005
- Paper (PDF File, 3MB)
Progress of preparations for the implementation of Basel II in Hong Kong
- PowerPoint presentation materials (PDF File, 512KB)
- Follow-up paper (PDF File, 910KB)
- Letter from Clerk to Panel on 28 June 2006 (PDF File, 10KB)
- Reply from Secretary for Financial Services and the Treasury on 30 June 2006 (PDF File, 19KB)
- Letter from the HKMA on 3 October 2006 (PDF File, 15KB)
Progress of preparation of Basel II Capital and Disclosure Rules
- 6 December 2004 - Basel II and Proposed Legislative Amendments to the Banking Ordinance (PDF File, 40KB)
- 5 July 2004 - The New Capital Accord (Basel II) (PDF File, 45KB)
