HKMA issues consultation on timeline for implementing Basel III final reform package

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Authored by: Simon Deane and Crystal Choi

On 4 August 2023, the HKMA wrote to the banking industry to consult on the timeline for implementing the Basel III final reform package.

The HKMA proposes that the implementation of the Basel III final reform package will start from a date no earlier than 1 July 2024, covering the revised standards on credit risk, operational risk and output floor as a minimum regulatory requirement, and the revised standards on market risk and credit valuation adjustment (“CVA”) risk as a reporting-only requirement. The revised market risk and CVA risk standards will take effect as minimum regulatory requirements on a date no earlier than 1 January 2025. The implementation dates of the revised disclosure requirements will follow those of their associated policy standards.

The consultation period for the proposed timelines ends on 4 September 2023 and the HKMA is working towards releasing the final set of rules by October 2023 for statutory consultation as required under the Banking Ordinance (Cap. 155).

The letter from the HKMA is available here.

Key Contacts

Simon Deane

Consultant | Banking and Finance

Email or call +852 2825 9209