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78.1

Supervisory Policy Manual

This Manual sets out the HKMA's latest supervisory policies and practices, the minimum standards authorized institutions ("AIs") are expected to attain in order to satisfy the requirements of the Banking Ordinance and recommendations on best practices that AIs should aim to achieve.

This Manual will be rolled out in stages, as batches of modules are finalised. Modules which are still under preparation are hyperlinked to the webpage containing all existing circulars and guidelines issued by the HKMA for readers' ease of reference.

The table of contents of the Manual below should be read in conjunction with the Introduction (PDF File, 95KB) and with the Glossary (PDF File, 225KB), which contains an explanation of abbreviations and other terms used in this Manual. If reading on-line, click on underlined headings to activate hyperlinks to the relevant module.

Notes to the following table:
1 GN = guidance note, SG = statutory guideline, TN = technical note
2 P = under preparation, C = under consultation, F = finalised module

Code Title Type1 Status2 Issued
IN INTRODUCTION (PDF File, 95KB)
F 19.01.01
SA SUPERVISORY APPROACH


SA-1 Risk-based supervisory approach (PDF File, 198KB) GN F 11.10.01
SA-2 Outsourcing (PDF File, 136KB) GN F
28.12.01
CG CORPORATE GOVERNANCE


CG-1 Corporate governance of locally incorporated authorized institutions (PDF File, 251KB) SG C
30.08.16
CG-2 Systems of control for the appointment of managers (PDF File, 142KB) SG F
24.05.02
CG-3 Code of conduct (PDF File, 108KB) SG F 21.06.02
CG-4 Establishment of overseas banking subsidiaries: §51A (PDF File, 125KB) SG F 28.12.01
CG-5 Guideline on a sound remuneration system (PDF File, 168KB) GN F 12.03.15
CG-6 Competence and ethical behaviour (PDF File, 159KB) GN C 21.07.17
CG-7 Code of conduct for benchmark submitters (PDF File, 184KB) SG F 23.08.13
IC INTERNAL CONTROLS


IC-1 Risk Management Framework (PDF File, 750KB) SG C 31.08.16
IC-2 Internal audit function (PDF File, 161KB) GN C 30.08.16
IC-3 Reporting requirements relating to authorized institutions' external auditors under the Banking Ordinance (PDF File, 185KB) GN F 06.11.03
IC-4 Complaint handling procedures (PDF File, 122KB) GN F 22.02.02
IC-5 Stress-testing (PDF File, 288KB) GN F 09.05.12
IC-6 The sharing and use of consumer credit data through a credit reference agency (PDF File, 101KB)
The sharing and use of consumer credit data through a credit reference agency (Under consultation) (PDF File, 156KB)
SG

SG
F

C
14.02.14

08.09.17
IC-7 The sharing and use of commercial credit data through a commercial credit reference agency (PDF File, 144KB)
The sharing and use of commercial credit data through a commercial credit reference agency (Under consultation) (PDF File, 167KB)
SG


SG

F


C
25.01.08


08.09.17
CA CAPITAL ADEQUACY


CA-B Capital Buffers      
CA-B-1  Countercyclical Capital Buffer (CCyB) - Approach to its Implementation (PDF File, 664KB)  GN  F 07.04.17
CA-B-2 Systemically Important Banks (PDF File, 230KB) SG F 18.02.15
CA-B-3 Countercyclical Capital Buffer (CCyB) – Geographic Allocation of Private Sector Credit Exposures (PDF File, 74KB) SG F 25.09.15
CA-G General


CA-G-1 Overview of capital adequacy regime for locally incorporated authorized institutions (PDF File, 285KB) SG F 27.02.15
CA-G-3 Use of internal models approach to calculate market risk (PDF File, 376KB) TN F 11.10.12
CA-G-4

Validating risk rating systems under the IRB approaches (PDF File, 450KB)

 

Validating risk rating systems under the IRB approach (Under consultation)

TN

 

 

F

 

 

C

14.02.06
CA-G-5 Supervisory review process (PDF File, 1.39MB) SG F 08.04.16
CA-S Specific capital adequacy treatment


CA-S-1 Property revaluation reserves
P
CA-S-4 Capital adequacy requirements for investment guarantees under Mandatory Provident Fund Schemes (PDF File, 203KB) SG F 16.02.01
CA-S-5 Use of internal models to measure market risks for investment guarantees under MPF schemes (PDF File, 1.2MB) TN F 16.02.01
CA-S-10 Financial instrument fair value practices (PDF File, 160KB) GN F 10.12.13
CS CONSOLIDATED SUPERVISION


CS-1 Group-wide approach to supervision of locally incorporated authorized institutions (PDF File, 155KB) GN F 24.11.08
CR CREDIT RISK MANAGEMENT


CR-G Risk management guidelines


CR-G-1 General principles of credit risk management (PDF File, 928KB) SG F 19.01.01
CR-G-2 Credit approval, review and records (PDF File, 686KB) SG F 19.01.01
CR-G-3 Credit administration, measurement and monitoring (PDF File, 519KB) SG F 19.01.01
CR-G-4 Loan classification and provisioning
P
CR-G-5 Country risk management (PDF File, 162KB) GN F
23.11.01
CR-G-6 Interest recognition (PDF File, 100KB) SG F
29.06.01
CR-G-7 Collateral and guarantees (PDF File, 134KB) SG F
29.06.01
CR-G-8 Large exposures and risk concentrations (PDF File, 130KB) SG F 01.04.04
CR-G-9 Exposures to Connected Parties (PDF File, 225KB) SG F
20.11.15
CR-G-10 Problem credit management (PDF File, 104KB) SG F
29.06.01
CR-G-11 Internal risk rating systems
P
CR-G-12 Credit risk transfer activities (PDF File, 328KB) GN F
30.06.16
CR-G-13

Counterparty credit risk management (PDF File, 229KB)

 

Counterparty credit risk management
(Under consultation)
(PDF File, 547KB)

GN

 

GN

F

 

C

03.06.09

 

28.07.17

CR-G-14 Non-centrally Cleared OTC Derivatives Transactions - Margin and Other Risk Mitigation Standards (PDF File, 394KB) SG F 27.01.17
CR-S Guidelines on specific lending activities


CR-S-1 Property lending
P
CR-S-2 Syndicated lending (PDF File, 118KB) GN F
29.06.01
CR-S-3 Trade finance
P
CR-S-4 New share subscription and share margin financing (PDF File, 135KB) SG F 26.01.07
CR-S-5 Credit card business (PDF File, 734KB) GN F 05.01.06
CR-S-6 Taxi loan financing
P
CR-L Limitations on credit exposures


CR-L-1 Consolidated supervision of concentration risks under part XV: §79A (PDF File, 92KB) SG F 31.08.01
CR-L-2 Exemption of financial exposures: §81(6)(b)(i) (PDF File, 96KB) SG F 31.08.01
CR-L-3 Letters of comfort: §81(6)(b)(ii) (PDF File, 138KB) SG F 31.08.01
CR-L-4 Underwriting of securities: §§81 and 87 (PDF File, 90KB) SG F 31.08.01
CR-L-5 Major acquisitions and investments: §87A (PDF File, 102KB) SG F 31.08.01
IR INTEREST RATE RISK MANAGEMENT


IR-1

Interest Rate Risk in the Banking Book (PDF File, 615KB)

 

(with the revised Return of Interest Rate Risk Exposures) (PDF File, 986KB)

GN C 22.06.17
LM LIQUIDITY RISK MANAGEMENT


LM-1 Regulatory Framework for Supervision of Liquidity Risk (PDF File, 590KB) 
SG F 29.07.16
LM-2 Sound systems and controls for liquidity risk management (PDF File, 445KB) SG F 25.11.16
OR OPERATIONAL RISK MANAGEMENT


OR-1 Operational risk management (PDF File, 192KB) GN F 28.11.05
RE RECOVERY AND RESOLUTION


RE-1 Recovery planning (PDF File, 193KB) SG F 20.06.14
RE-2

Resolution planning

This module has been superseded by CI-1, a chapter of Code of Practice to be issued under the Financial Institutions (Resolution) Ordinance.

     
RR REPUTATION RISK MANAGEMENT


RR-1 Reputation risk management (PDF File, 232KB) GN F 17.12.08
SR STRATEGIC RISK MANAGEMENT


SR-1 Strategic risk management (PDF File, 245KB) GN F 12.12.07
TA TRADING ACTIVITIES


TA-1 Market risk management
P
TA-2 Foreign exchange risk management (PDF File, 191KB) GN F 14.01.09
TM TECHNOLOGY RISK MANAGEMENT


TM-G General technology risk management


TM-G-1 General principles for technology risk management (PDF File, 154KB) GN F 24.06.03
TM-G-2 Business continuity planning (PDF File, 127KB) GN F 02.12.02
TM-E Electronic banking


TM-E-1 Risk Management of E-banking (PDF File, 255KB) GN F 02.09.15
TM-E-2 Regulation of advertising material for deposits issued over the internet (PDF File, 93KB) SG F 24.05.02
SB SECURITIES AND LEVERAGED FOREIGN EXCHANGE BUSINESS


SB-1 Supervision of regulated activities of SFC-registered authorized institutions (PDF File, 489KB) SG F 27.05.16
SB-2 Leveraged foreign exchange trading - conduct of unsolicited calls (PDF File, 113KB) SG F 28.03.03
MP MANDATORY PROVIDENT FUND


MP-2 Provisioning requirements for investment guarantees under Mandatory Provident Fund Schemes (PDF File, 186KB) SG F 16.02.01
ML MONEY LAUNDERING


ML-1 Guideline on Anti-Money Laundering and Counter-Terrorist Financing (PDF File, 987KB) SG
F 27.03.15
CA-D Disclosure


CA-D-1 Guideline on the application of the Banking (Disclosure) Rules (PDF File, 788KB) GN F 06.08.15
MS MISCELLANEOUS


GL GLOSSARY (PDF File, 226KB)
P
14.02.06

 

Last revision date: 8 September 2017
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