Supervisory Policy Manual (SPM): Consequential updates arising fromimplementation of Basel III final reform package

The Hong Kong Monetary Authority (HKMA) announced the issuance of five revised Supervisory Policy Manual (SPM) modules as statutory guidelines under the Banking Ordinance, effective 1 January 2025. The updated modules include CR-G-8 (Large Exposures and Risk Concentrations), CR-G-9 (Exposures to Connected Parties), CR-L-1 (Consolidated Supervision of Concentration Risks), CR-L-4 (Underwriting of Securities), and LM-1 (Regulatory Framework for Liquidity Risk Supervision). These revisions align with the Banking (Exposure Limits) (Amendment) Rules 2023 and Banking (Liquidity) (Amendment) Rules 2023 while improving clarity and reflecting policy intent. Full access to the modules is available on the HKMA’s website.

Resources: https://www.hkma.gov.hk/media/eng/doc/key-information/guidelines-and-circular/2024/20241213e3.pdf