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, 542KB) | SG | F |
06.10.17
|
| 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)
Guideline on a sound remuneration system (PDF File, 236KB) |
GN
GN |
F
C |
12.03.15
06.05.19 |
| CG-6 | Competence and ethical behaviour (PDF File, 118KB) | GN | F | 08.12.17 |
| 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, 507KB) | SG | F | 06.10.17 |
| IC-2 | Internal audit function (PDF File, 201KB) | GN | F | 31.10.17 |
| 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) | SG | F | 14.02.14 |
| IC-7 | The sharing and use of commercial credit data through a commercial credit reference agency (PDF File, 144KB) | SG | F | 24.11.17 |
| 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 approach (PDF File, 1.25MB) |
TN |
F |
17.05.18 |
| 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)
Large exposures and risk concentrations (PDF File, 602KB) |
SG
SG |
F
C |
01.04.04
08.05.19 |
| CR-G-9 |
Exposures to Connected Parties (PDF File, 225KB)
Exposures to Connected Parties (PDF File, 267KB) |
SG
SG |
F
C |
20.11.15
08.05.19 |
| 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, 372KB) |
GN |
F |
03.07.18
|
| 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)
Consolidated Supervision of Concentration Risks under Banking (Exposure Limits) Rules: Rule 6 (PDF File, 389KB) |
SG
SG |
F
C |
31.08.01
08.05.19 |
| 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)
Letters of Comfort: Rule 57(1)(d) (PDF File, 377KB) |
SG
SG |
F
C |
31.08.01
08.05.19 |
| CR-L-4 |
Underwriting of securities: §§81 and 87 (PDF File, 90KB)
Underwriting of Securities: Banking (Exposure Limits) Rules (PDF File, 209KB) |
SG
SG |
F
C |
31.08.01
08.05.19 |
| CR-L-5 |
Major acquisitions and investments: §87A (PDF File, 102KB)
Major Acquisitions and Investments: Part 3 of BELR (PDF File, 504KB) |
SG
SG |
F
C |
31.08.01
08.05.19 |
| IR | INTEREST RATE RISK MANAGEMENT | |||
| IR-1 |
Interest Rate Risk Management (PDF FILE, 820KB)
Interest Rate Risk in the Banking Book (PDF File, 820KB)
|
GN
|
F
|
13.12.02
|
| 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, 343KB) | 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 |
| AML | ANTI-MONEY LAUNDERING | |||
| AML-1 | Supervisory Approach on Anti-Money Laundering and Counter-Financing of Terrorism (PDF File, 327KB) | SG |
F | 19.10.18 |
| AML-2 | Guideline on Anti-Money Laundering and Counter-Financing of Terrorism (PDF File, 1.04MB) | SG |
F | 19.10.18 |
| CA-D | Disclosure | |||
| CA-D-1 | Guideline on the application of the Banking (Disclosure) Rules (PDF File, 788KB) | GN | F | 06.08.15 |
| CA-D-1 | Guideline on the application of the Banking (Disclosure) Rules (PDF File, 1.01MB) | GN | C | 03.05.19 |
| MS | MISCELLANEOUS | |||
| GL | GLOSSARY (PDF File, 226KB) | P |
14.02.06
|
