People’s Republic of China––Hong Kong Special Administrative Region: Financial System Stability Assessment
IMF Staff Country Reports, May 22, 2014
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Bibliographic details
- Published: May 22, 2014
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781498313216.002
Key findings
- HKSAR’s financial sector is very well regulated, with the capacity to withstand a diversity of shocks.
- The sector faces major risks, which places a significant premium on effective liquidity management, macroprudential oversight, and microprudential supervision.
- The regulation and supervision framework of the financial sector is of a high caliber and displays a high level of compliance with international standards, but there remains scope for further strengthening.
- Financial market infrastructures are highly sophisticated, but further enhancements are needed to fully comply with new international standards.
Risks and vulnerabilities
- Major risks in the financial sector necessitate strengthened liquidity management.
- Macroprudential oversight is critical given the identified sectoral risks.
- Microprudential supervision must be emphasized to maintain resilience against diverse shocks.
Regulatory and supervisory assessment
- Overall regulatory and supervisory arrangements are assessed as high caliber.
- The framework shows a high level of compliance with international standards.
- There remains scope for further strengthening the regulatory and supervisory framework to address identified risks.
Financial market infrastructures
- Market infrastructures are described as highly sophisticated.
- Further enhancements are needed for full compliance with new international standards.
Subject areas and keywords (as reported)
- Subject: Banking, Commercial banks, Financial institutions, Financial sector policy and analysis, Insurance companies, Loans, Mortgages, Stress testing
- Keywords: asset, banking sector, Commercial banks, CR, foreign currency, Global, HKMA Macro-Surveillance Committee, Hong Kong office basis, Hong Kong SAR, Insurance companies, insurance group, interest rate, ISCR, liquidity ratio, Loans, LTV ratio, Mortgages, net, Stress testing
People’s Republic of China––Hong Kong Special Administrative Region: Financial System Stability Assessment