HK regulator grants banking licence to China Guangfa Bank
After the granting of a banking licence to CGB, the number of licensed banks in Hong Kong is 163.
The Hong Kong Monetary Authority today announces that it has granted a banking licence to China Guangfa Bank Co Ltd (CGB) under the Banking Ordinance. CGB is incorporated in the Mainland China.
The granting of this banking licence takes effect today.
Following the granting of a banking licence to CGB, the number of licensed banks in Hong Kong grows to 163.
Speaking of Hong Kong’s banking sector, let’s note that the Banking (Capital) (Amendment) Rules 2020 (BCAR 2020) were gazetted today to implement the latest international standards on banking regulation promulgated by the Basel Committee on Banking Supervision.
The BCAR 2020 implement two sets of capital standards for the treatment of banks’ counterparty credit risk exposures to derivatives trades. They form part of the Basel III reform package introduced in the aftermath of the global financial crisis to enhance the resilience of banks against future shocks.
A Hong Kong Monetary Authority spokesman said, “Complementing the global over-the-counter derivatives market reforms to promote central clearing of derivatives trades, the Basel Committee’s revised capital standards for counterparty credit risk exposures are designed to better address the relevant risks observed in stress periods and reflect the risk management practices of banks. We have consulted the banking industry in the course of formulating the rules to ensure that they befit the local circumstances and are appropriate for implementation in Hong Kong.”
The BCAR 2020 will be tabled before the Legislative Council at its sitting on April 29th, and will come into operation on June 30, 2021.
