HKMA's response to media enquiries

Press Releases

22 Mar 2023

HKMA's response to media enquiries

In response to media enquiries regarding creditor hierarchy, the Hong Kong Monetary Authority has the following responses:

  1. The Financial Institutions (Resolution) Ordinance establishes the legal basis for the resolution regime in Hong Kong. Under the Ordinance, there is a clear order in which shareholders and creditors would bear losses in a resolution scenario.
  2. Holders of capital instruments (including core equity capital, Additional Tier 1 (AT1) capital and Tier 2 capital) issued by a financial institution should expect to be treated in resolution in accordance with the priority they would enjoy on a winding up of the institution. Accordingly, shareholders are the first ones to absorb losses, followed by holders of AT1 and Tier 2 capital instruments.


Hong Kong Monetary Authority
22 March 2023


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Last revision date : 22 March 2023