HKMA published a circular on the latest developments related to the reform of interest rate benchmarks. The circular also sets out the steps that HKMA plans to take to monitor the progress of authorized institutions in preparing for the transition from interbank offered rates (IBORs) to alternative reference rates. HKMA observes that many authorized institutions have made progress in preparing for the transition to alternative reference rates. To monitor the development, HKMA will soon conduct a regular survey to collect information on authorized institutions’ exposures referencing IBORs and the progress of their preparatory work for the transition. HKMA will take suitable follow-up actions based on insights from the survey of individual institutions. Authorized institutions are expected to keep abreast of both international and local developments of the benchmark reform and take them into account in their preparation for the transition. Locally, the Treasury Markets Association (TMA) has identified the Hong Kong Dollar Overnight Index Average (HONIA) as the alternative reference rate to the Hong Kong Interbank Offered Rate (HIBOR); however, there is no plan to discontinue HIBOR. The TMA has completed a public consultation on some technical refinements to HONIA and will release the results in due course. The Working Group on Alternative Reference Rates formed under the TMA has convened regular meetings to discuss issues arising from the reform, with a view to help local market participants prepare for the possible discontinuation of LIBOR and to facilitate the adoption of HONIA by market participants. The circular notes that international authorities, standard-setting bodies, and industry organizations have made significant progress in laying down critical elements for the transition. These include the: Keywords: Asia Pacific, Hong Kong, Banking, Securities, Interest Rate Benchmarks, IBORs, LIBOR, Reference Rates, HONIA, HIBOR, HKMA News US Agencies (FDIC, FED, and OCC) announced an interim final rule to encourage lending to small businesses through the Small Business Administration's Paycheck Protection Program (PPP). April 13, 2020 WebPage Regulatory News News IASB has proposed amendments to the IFRS standards to assist companies in providing useful information to investors about the effects of interest rate benchmark reform on financial statements. April 09, 2020 WebPage Regulatory News News OSFI announced further regulatory adjustments to support the financial and operational resilience of federally regulated banks and insurance companies, in light of the COVID-19 outbreak. April 09, 2020 WebPage Regulatory News News The Financial Policy Committee (FPC) of BoE met to review developments in the financial sector amid the COVID-19 crisis. April 09, 2020 WebPage Regulatory News News MAS announced that it will adjust selected regulatory requirements and supervisory programs to enable financial institutions to focus on dealing with issues related to the COVID-19 pandemic. April 09, 2020 WebPage Regulatory News News PRA published the Business Plan for 2020-21. April 09, 2020 WebPage Regulatory News News Due to COVID-19 outbreak, BaFin and Bundesbank are postponing the planned stress test for 2021-22 for less significant institutions. April 09, 2020 WebPage Regulatory News News ESMA issued a public statement to promote, amid the COVID-19 crisis, a coordinated action by national competent authorities regarding the timeliness of fulfilling external audit requirements for interest rate benchmark administrators and interest rate benchmark contributors. April 09, 2020 WebPage Regulatory News News IOSCO agreed to delay some of its work in 2020 to redirect its resources to focus on the multiple challenges securities markets regulators are addressing as a result of the COVID-19 crisis. April 08, 2020 WebPage Regulatory News News MAS published amendments to Notices 652 and 653 on net stable funding ratio (NSFR) requirements and NSFR disclosures, respectively. April 08, 2020 WebPage Regulatory News
The HKMA published an update on benchmark reform and set out the steps it would take to monitor the progress of financial institutions preparing to migrate from IBORs to RFRs . The central bank plans to conduct a survey to gauge institutions ' exposure to risk and the progress made to prepare for the transition . Follow - up decisions will be determined by the survey results .