Ivan Chan’s Post

📢 To promote cross-boundary financial connectivity, the HKMA and the People’s Bank of China (PBoC) launched the “Three Connections, Three Facilitations” initiative this year. Specific measures, including the enhancements to the Cross-boundary Wealth Management Connect Pilot Scheme, expansion of the cross-boundary e-CNY pilot in Hong Kong, and facilitation of remittances for property purchase in the Mainland cities in the Greater Bay Area (GBA), have already been rolled out. 💱 To enhance financial market connectivity, onshore RMB bonds issued by the Ministry of Finance and Mainland policy banks are now eligible collateral for the HKMA’s RMB Liquidity Facility. The next imminent breakthrough that we are expecting is in relation to the use of onshore bonds under Northbound Bond Connect as eligible margin collateral for Northbound Swap Connect transactions. The HKMA is also working with relevant institutions to further open up the onshore repo market to institutional investors outside the Mainland. 💰 On the corporate side, the HKMA and the PBoC have set out a cooperative arrangement to facilitate two-way cross-boundary credit referencing. Through the cooperation of credit reference agencies in Shenzhen and Hong Kong, cross-boundary credit referencing pilots have enabled Hong Kong banks to access Mainland SMEs business data and credit reference information, facilitating financing worth around HK$30 million. By bridging this credit data gap, the initiative helps reduce financing costs for businesses, ultimately serving the real economy more effectively. 🏘️ For Hong Kong residents, new facilitative measures for cross-boundary remittances for property purchases in Mainland cities in the GBA have provided a safe and convenient channel for cross-boundary property purchase remittance and transactions. 🤝 On the horizon, the HKMA will soon sign a MoU with the PBoC to establish a cooperative framework on cross-boundary payment linkage between Hong Kong and the Mainland, further boosting the efficiency of cross-border payments. These initiatives mark another significant step towards closer financial cooperation between Hong Kong and the Mainland. Stay tuned for more updates on additional initiatives that we are working on! Learn more about recent developments in financial cooperation between Hong Kong and the Mainland here: https://lnkd.in/gyPXhz8d #CrossBoundary #Connectivity #PBoC #GBA 

📢 The HKMA is pleased to announce the signing of an MoU with the People’s Bank of China (PBoC) on the Cross-Boundary Linkage of Payment Systems. The MoU establishes a cooperation framework to support the linkage of the payment systems of the Mainland and Hong Kong. 🔗 The MoU signing follows a productive meeting this week between Mr Lu Lei, Deputy Governor of the PBoC, and Mr Howard Lee, Deputy Chief Executive of the HKMA. The discussion centred around strengthening financial cooperation and pushing forward the linkage of fast payment systems. 🤝 These efforts pave the way towards seamless and efficient cross-boundary payment connectivity between Hong Kong and the Mainland, unlock new opportunities for businesses and individuals in both places, and further cement Hong Kong’s role as a leading international financial centre. 💡 #HKMAinnovates #PBoC #CrossboundaryPayment #Connectivity #FinancialInnovation

Today (September 11), South Korea’s Financial Services Commission (FSC) and Financial Supervisory Service (FSS) announced the introduction of stress buffer capital requirements for banks and bank holding companies, aimed at enhancing the resilience of the banking sector. This initiative is part of the ongoing reforms to improve the soundness of the banking system. Key Highlights: - The minimum capital regulation ratio for banks and bank holding companies will be increased based on their decline in common equity capital under crisis scenarios. Failure to meet the new requirements may result in restrictions on dividends, bonuses, and other financial distributions. - The introduction of stress buffer capital was recommended as part of broader efforts outlined in the Bank Soundness System Improvement Direction in March 2023. - The reforms will require domestic banks and bank holding companies to accumulate additional capital, potentially up to 2.5%, based on the results of stress tests analyzing crisis scenarios. - If a bank fails to meet the capital requirements, it may face limitations on the payment of dividends and bonuses. Implementation & Scope: - The stress buffer capital system applies to 17 domestic banks and 8 bank holding companies. However, Korea Development Bank, Korea Export-Import Bank, and Small and Medium Business Bank are exempt due to their government support structure. Internet-only banks are granted a grace period of two years. - The revised regulations will be implemented by the end of 2024, following a review by the Regulatory Reform Committee and Financial Services Commission. Regulatory Change Process: - The notice period for the proposed changes is open from September 11 to September 21, 2024, during which stakeholders can provide written feedback. The full text of the amendments can be found on the FSC and FSS websites. This new framework, based on international standards such as the Basel Pillar 2 system, ensures that banks in South Korea maintain a robust capital structure capable of absorbing potential losses during economic crises. Unlock cutting-edge legal intelligence with a free subscription to our platform — join us today. Visit https://lnkd.in/gZmkUPim to know more. #BankingReforms #SouthKorea #FinancialResilience #CapitalBuffer #FSC #FSS #BankingRegulations #GRI

Simple reason why HK is able to recently overtake Singapore as Asia’s top financial centre…. Try opening a bank account for an SPV in Singapore, with plans for large AUMs, and the rejection rate is probably >90%, and success probably comes only after several months of intense scrutiny (aka DD). How to be competitive? The financial world does not revolve around Singapore’s financial regulations…. Singapore’s banks will need to find a better way to manage the business needs of new asset management companies, or risk losing them to our competitors. The largest ever money laundering case should not cause Singapore authorities and banking sector to knee-jerk and erode our financial competitiveness. https://lnkd.in/gbnN3trn

📢 The HKMA is pleased to announce the signing of an MoU with the People’s Bank of China (PBoC) on the Cross-Boundary Linkage of Payment Systems. The MoU establishes a cooperation framework to support the linkage of the payment systems of the Mainland and Hong Kong. 🔗 The MoU signing follows a productive meeting this week between Mr Lu Lei, Deputy Governor of the PBoC, and Mr Howard Lee, Deputy Chief Executive of the HKMA. The discussion centred around strengthening financial cooperation and pushing forward the linkage of fast payment systems. 🤝 These efforts pave the way towards seamless and efficient cross-boundary payment connectivity between Hong Kong and the Mainland, unlock new opportunities for businesses and individuals in both places, and further cement Hong Kong’s role as a leading international financial centre. 💡

The National Agency of Perspective Projects of the Republic of Uzbekistan (NAPP) has registered OTP Bank (OTP Group) one of Hungary’s largest banks and a regional custodian bank, as a participant in the special legal regime "Regulatory Sandbox" for Uzbekistan’s capital markets. OTP Bank’s inclusion in this regime marks a significant step in connecting the bank with Uzbekistan’s securities market. It became the second international financial institution to receive such authorization from NAPP. This achievement further strengthens OTP Bank’s commitment to the Uzbek market following its acquisition of a controlling stake in ИПОТЕКА-БАНК in 2023. #uzbekistan #otpbank #regulatory #sandbox #capitalmarkets #development #investments

[Bank association chief expresses regret over HK ELS misselling] Korea Federation of Banks Chair Cho Yong-byoung on Monday expressed regrets over massive losses inflicted on consumers who invested in derivatives products underlying a key Hong Kong stock market index, sold by local lenders. Earlier in the day, the country’s regulator Financial Supervisory Service advised banks and securities firms to compensate for losses incurred from their incomplete sales of equity-linked securities products tracking Hong Kong's H Index. The total loss on such products is expected to reach 5.8 trillion won if the Hang Seng index fails to recover from the current slump until the end of this year. “Regrettably, this kind of accident happened again although banks have been making various efforts for consumer protection,” Cho said during a press conference held to mark his 100th day in office. Tap below to read full story. #Banks #Banking #Association #HK #ELS #HongKong #SouthKorea https://lnkd.in/evV3jYPJ

Moving from a three-tier structure, HKMA proposed a new two-tier structure requiring a minimum capital of HK$100 million and a minimum deposit size of HK$500,000 Read here: https://lnkd.in/gChkrC3N -with Hong Kong Monetary Authority (HKMA) #fintech #banking #financialservices

Excited to see the Hong Kong Monetary Authority (HKMA) supporting SMEs through various banking initiatives. One key effort is the use of IADS to expedite the credit assessment process and provide more accurate, in-depth insights into the credibility of SMEs. Planto's proprietary technology is helping to address these needs and support banks in assisting SMEs through IADS, creating over 50+ insights in a matter of seconds. If you're interested in learning more about our market-validated solutions, feel free to reach out! #SME #fintech #hkma #lending #hongkong #IADS

Seminar on the banking sector’s support measures for small and medium-sized enterprises (SMEs), co-organised by the HKMA, The Hong Kong Association of Banks and the Chinese Banking Association of Hong Kong, brought together around 200 representatives from the banking sector, trade associations and chambers, and SME operators to exchange practical experience and success stories. In his welcoming remarks, Arthur Yuen, Deputy Chief Executive of the HKMA said that nearly 7,000 SMEs, involving a credit limit of over HK$15 billion, had benefitted in the first two months after announcement of the 9 support measures by the HKMA and the Banking Sector SME Lending Coordination Mechanism. Banks and SME operators engaged in insightful panel discussions on how banks: (1) leverage fintech to ease access to SME financing; (2) support SMEs in their business transformation; and (3) facilitate SMEs’ cross-border business expansion. The Seminar is also widely supported by the Trade and Industry Department’s Support and Consultation Centre for SMEs, The Hong Kong Mortgage Corporation Limited, The Chinese Banks’ Association, HKECIC - Hong Kong Export Credit Insurance Corporation and HKPC - Hong Kong Productivity Council, as well as 15 chambers and business associations. All stakeholders are committed to promote further development of Hong Kong’s SME ecosystem. See more: https://lnkd.in/g_ZYXCHe #SMEs #Banking #BusinessGrowth #HongKongeconomy