GCC Consulting

The HKMA issued a letter on 31 May 2023 to consult the banking industry on implementation of Basel III final reform package – credit risk and output floor

This consultation document assumes that the rules created by the Monetary Authority under section 97C of the Banking Ordinance will be entitled the Banking (Capital)(Amendment) Rules 2023 (BCAR). The BCAR is divided into five parts, with Part 1 outlining the commencement arrangements for the different parts, Part 2 detailing the amendments for the revised credit risk framework and output floor, Part 3 outlining amendments to the credit risk framework related to the revised market risk and CVA risk frameworks, Part 4 outlining the haircut floor requirements for non-centrally cleared SFTs, and Part 5 outlining amendments that will take effect on 1 January 2024, including the new capital treatments for IPO financing.

Proposed Amendments to Banking (Capital) Rules for
Implementation of Revised Credit Risk Framework and
Output Floor: https://www.hkma.gov.hk/media/eng/regulatory-resources/consultations/Annex_1_proposed_amendments-credit_risk_framework_and_output_floor_(20230531).pdf 

List of ECAIs and Mapping Tables: https://www.hkma.gov.hk/media/eng/regulatory-resources/consultations/Annex_2_ECAI_mapping_tables_(20230531).pdf

Resource: https://www.hkma.gov.hk/media/eng/regulatory-resources/consultations/Annex_1_proposed_amendments-credit_risk_framework_and_output_floor_(20230531).pdf


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