On May 4, 2018 in Hong Kong the Banking (Disclosure) (Amendment) Rules 2018 and the Banking (Specification of Multilateral Development Bank) (Amendment) Notice 2018 were published to implement recent international standards on banking regulation. They were tabled at the Legislative Council on May 9 for implementation on June 30.
The Amendment Rules are directed to accomplish the latest disclosure requirements which were issued by the Basel Committee on Banking Supervision in March 2017 to improve the requirements in relation of transparency, comparability and user-relevance of bank disclosures.
The Amendment Notice express the Committee decision to fix the Asian Infrastructure Investment Bank as a multilateral development bank to which banks' exposures will have right to preferential capital and liquidity treatment.
Thus, the implementation of Basel III shows Hong Kong's interest in correspondence of its regulatory regime with the latest international regulatory standards. The Monetary Authority said the disclosure rules are a continuation of efforts to promote market discipline in the banking sector and the Amendment Notice will provide renew of the capital and liquidity frameworks of local authorised institutions.
