On January 15, 2025, the Banking (Capital) (Amendment) Rules 2023 (Amendment) Rules 2024 (BCAR Amendment Rules) passed in the Legislative Council (LegCo), streamlining the implementation of the original Banking (Capital) (Amendment) Rules 2023 ("BCAR") by removing redundant provisions.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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On January 15, 2025, the Banking (Capital) (Amendment) Rules 2023 (Amendment) Rules 2024 (BCAR Amendment Rules) passed in LegCo, specifically designed to address redundancies within the original Banking (Capital) (Amendment) Rules 2023 ("BCAR") framework. The BCAR Amendment Rules streamline the implementation of the BCAR by removing provisions that have become obsolete due to the simultaneous commencement of key sections.
The BCAR Amendment Rules repeal Parts 3 and 5 of the BCAR, pertaining to credit risk and market risk respectively. These parts were initially included with transitional provisions to manage a phased implementation; however, as both Part 3 and Part 5 are now scheduled to commence on January 1, 2025, these transitional arrangements are no longer required.
Specifically, the amendment details include the removal of Sections 33(4), 33(6), 33(20), 213, 215, 216, 246, and 247, alongside amendments to Sections 255 and 270 and the addition of a new Part 12. The Hong Kong Monetary Authority ("HKMA") undertook extensive consultations with the banking industry, beginning in 2019 and including a statutory consultation period in October and November 2023, prior to the enactment of these rules.
The BCAR Amendment Rules will come into effect on January 1, 2025.
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