On 23 Dec 2025, the HKMA finalised revisions to SPM module IR-1 and related completion instructions to implement the Basel Committee's recalibrated interest rate shocks, effective 1 January 2026. The first reporting under the revised framework will apply to the 31 March 2026 position for MA(BS)12A submissions, with no changes to return template layouts.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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Regulatory Revisions to SPM Module IR-1
On 23 Dec 2025, the Hong Kong Monetary Authority (HKMA) has finalised revisions to the Supervisory Policy Manual (SPM) module IR-1 and related completion instructions for returns MA(BS)12, MA(BS)12A, and MA(BS)12B, following industry consultation. The revisions implement the recalibrated interest rate shocks as specified in the Basel Committee's July 2024 document 'Recalibration of shocks in the interest rate risk in the banking book standard', with minor clarifications and updates incorporated while maintaining the existing return template layout.
Implementation Timeline
The revised SPM module IR-1 will become effective on 1 January 2026. Reporting institutions must apply the recalibrated interest rate shocks to the position as of 31 March 2026 for the first submission of the MA(BS)12A return, marking the initial applicability of the revised framework.
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