A man walks past an office building, reflecting the city in the Central district of Hong Kong on Aug 31, 2016. (ISAAC LAWRENCE / AFP)
HONG KONG - The Hong Kong government unveiled a new bill on Friday to strengthen the resilience of Hong Kong's banking system in accordance with international regulatory standards.
The bill published on the Gazette will be introduced into the Legislative Council for first reading on Oct 25.
It will contribute to the stability of the banking system and add to the credibility of Hong Kong as an international financial center
SAR govt spokesperson
The bill seeks to implement the latest standards promulgated by the Basel Committee on Banking Supervision in relation to financial exposure limits of authorized institutions by empowering the Monetary Authority to prescribe rules for such limitations.
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In accordance with the recommendations of the Financial Stability Board, it also empowers the Monetary Authority to require authorized institutions to maintain, revise or implement a recovery plan, which should set out the measures that the institution can take to stabilize and restore its financial resources and viability in the event that it comes under severe stress.
A Monetary Authority spokesperson said, "We have closely engaged the banking industry in formulating the bill. The bill will strengthen the existing financial exposure regime under the Banking Ordinance, and provide greater transparency in respect of the recovery planning process for AIs."
A government spokesperson said, "It will contribute to the stability of the banking system and add to the credibility of Hong Kong as an international financial center."