Implementation of Basel III final reform package: Supervisory highlights

The Hong Kong Monetary Authority (HKMA) is actively supporting the financial industry in preparing for the implementation of the Basel III final reform package (B3F), which will take effect on January 1, 2025. The HKMA has engaged in extensive consultations with authorized institutions (AIs), offering guidance and prioritizing resources to review AI applications related to B3F adoption. Significant progress has been made, with many AIs completing system testing and undergoing audits. To ensure successful implementation, the HKMA emphasizes key practices, including senior management oversight, maintaining thorough audit trails, updating internal processes, providing staff training, and conducting post-implementation monitoring. The HKMA will continue its support to ensure a smooth transition to the revised capital standards.

Resources: https://www.hkma.gov.hk/media/eng/doc/key-information/guidelines-and-circular/2024/20241121e2.pdf