On 13 Dec 2024, the HKMA issued revised SPM modules to implement consequential updates from the Basel III final reform package, effective 1 January 2025. The revisions align the SPM with the Banking (Exposure Limits) (Amendment) Rules 2023 and Banking (Liquidity) (Amendment) Rules 2023, incorporating refinements to existing provisions without introducing new regulatory requirements.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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Revised SPM Modules Issued
On 13 Dec 2024, the Hong Kong Monetary Authority (HKMA) issued revised Supervisory Policy Manual (SPM) modules as statutory guidelines under the Banking Ordinance, following consultation with industry associations, to implement consequential updates arising from the Basel III final reform package.
Scope and Effective Date
The revisions apply to five SPM modules: CR-G-8 (Large Exposures and Risk Concentrations), CR-G-9 (Exposures to Connected Parties), CR-L-1 (Consolidated Supervision of Concentration Risks: BELR Rule 6), CR-L-4 (Underwriting of Securities: BELR), and LM-1 (Regulatory Framework for Supervision of Liquidity Risk). These modules will take effect on 1 January 2025, aligning with the implementation date of the Banking (Exposure Limits) (Amendment) Rules 2023 and Banking (Liquidity) (Amendment) Rules 2023.
Purpose of Revisions
The revised modules incorporate updates to reflect the new exposure limits and liquidity framework under the Basel III reforms, alongside refinements to improve clarity and better align with the policy intent of existing provisions in the relevant Rules. The changes are consequential to the statutory amendment rules, not the introduction of new regulatory requirements.
Access and Contact Information
Online access to the revised SPM modules is available on the HKMA’s public website and Supervisory Communication Website. Queries on CR-G-8, CR-G-9, CR-L-1, and CR-L-4 should be directed to the Banking Policy team at
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