Amended banking capital rules to take effect January 2025

These amendments incorporate the Basel III final reform package.

The government has announced that Parts 3 and 5 of the Banking Capital Amendment Rules 2023 will come into effect on 1 January 2025.

Part 3 of the amendment addresses revisions related to credit risk, operational risk, the output floor, and sovereign concentration risk, whilst Part 5 introduces changes concerning market risk and credit valuation adjustment risk.

These amendments incorporate the Basel III final reform package, strengthening Hong Kong's banking regulations and reinforcing its status as a financial hub.

The notice will be submitted to the Legislative Council on 16 October for negative vetting, allowing the council to review and possibly challenge the amendments before they come into effect.