RE-2 Resolution Planning V.1 – draft for consultation
4. Supervisory assessment of core information and analysis
4.1 General
4.1.1 This section sets out the HKMA’s approach to, and expectations in, reviewing an AI’s core information submission.
4.2 Assessment approach
4.2.1 The HKMA’s review of information provided by AIs for the purposes of resolution planning will be an iterative process. Review of core information will inform the additional information, if any, that may be requested as supplemental information.
4.2.2 The HKMA may develop resolution strategies and operational plans for potentially systemically significant and critical AIs and may also undertake an initial assessment of resolvability concurrently.
4.2.3 When submitting information, AIs should present it in a concise manner.
4.3 Information sharing with other regulators
4.3.1 Close cooperation between home and key host resolution authorities is of crucial importance to enhancing
Supervisory Policy Manual
RE-2 Resolution Planning
V.1 – draft for consultationpreparedness for resolution. In turn cooperation will require the ability to exchange relevant information with other authorities involved in the resolution planning process. Key Attribute 12.1(i) states that:
“Jurisdictions should ensure that no legal, regulatory or policy impediments exist that hinder the appropriate exchange of information, including firm-specific information, between supervisory authorities, central banks, resolution authorities, finance ministries and the public authorities responsible for guarantee schemes. In particular, the sharing of all information relevant for recovery and resolution planning and for resolution should be possible in normal times and during a crisis at a domestic and a cross-border level.”
4.3.2 Taking into account the relevant legal requirements and safeguards11, it is likely that the HKMA will need to share information provided by AIs for the purposes of resolution planning with other local authorities and/or overseas regulators.
11 Whether under the Banking Ordinance or in due course the FI(R)B once it comes into force.
Supervisory Policy Manual
RE-2 Resolution Planning
V.1 – draft for consultationAnnex: Information template for potential critical financial functions Information has to be reported separately on each relevant entity.
Function category Products and services Requested information A. Deposits 1. Retail deposits to split types of
deposits further by:
a. Total deposit liabilities b. Number of accounts c. Number of customers
d. Number of accounts with balances above Deposit Protection Scheme (DPS) coverage limit
e. Number of accounts with balances not more than DPS coverage limit
f. Number of customers with balances above DPS coverage limit
g. Number of customers with balances not more than DPS coverage limit
h. Total deposit liabilities ineligible for DPS protection i. Total deposit liabilities eligible for DPS protection (capped
at coverage limit per depositor) j. Market share estimate
2. Corporate deposits to split types of deposits further by:
− current, savings or time (by maturity)
− HKD and other currencies
a. Total deposit liabilities b. Number of accounts c. Number of customers
d. Number of accounts with balances above DPS coverage limit
e. Number of accounts with balances not more than DPS coverage limit
f. Number of customers with balances above DPS coverage limit
g. Number of customers with balances not more than DPS coverage limit
h. Total deposit liabilities ineligible for DPS protection i. Total deposit liabilities eligible for DPS protection (capped
at coverage limit per depositor) j. Market share estimate
Supervisory Policy Manual
RE-2 Resolution Planning
V.1 – draft for consultationFunction category Products and services Requested information B. Lending and Loan
1. Retail secured to split further by type, maturity (short term12 / long term13 / revolving) and currency
a. Total assets
b. Total committed facilities c. Number of accounts d. Number of customers e. Market share estimate 2. Retail unsecured personal to split
further by type, maturity (short term12 / long term13 / revolving) and currency
a. Total assets
b. Total committed facilities c. Number of accounts d. Number of customers e. Market share estimate 3. Corporate secured to split further
by type, maturity (short term / long term / revolving) and currency
a. Total assets
b. Total committed facilities c. Number of accounts d. Number of customers e. Market share estimate
4. Corporate unsecured to split further by type, maturity (short term / long term / revolving) and currency
a. Total assets
b. Total committed facilities c. Number of accounts d. Number of customers e. Market share estimate 5. Trade Finance to split further by
type (e.g. documentary credit/collection, guarantees, import/export loans, factoring)
a. Total assets b. Number of customers c. Number of accounts d. Market share estimate 6. Others (types of loans that may
not fit well to the descriptions above, e.g. infrastructure lending)
a. Total assets
b. Total committed facilities c. Number of accounts d. Number of customers e. Market share estimate
12Short term retail lending refers to lending with a maturity of up to one year.
13Long term retail lending refers to lending with a maturity of more than one year.
Supervisory Policy Manual
RE-2 Resolution Planning
V.1 – draft for consultationFunction category Products and services Requested information C. Payments, clearing,
custody and settlement
1. Cash services
− (ATMs, branch network, note issuance, transfer/remittance services, electronic payment services)
a. Transaction volume and value (to specify form, e.g.
daily/monthly, flow, average, domestic vs cross-border, etc.)
b. Users or members of these systems or services c. Market share estimate
2. Small value retail payment systems
− (Credit card schemes, debit card schemes, large merchant acquirers, payment gateways and mobile payment infrastructure)
a. Transaction volume and value, broken down by type and currency (to specify form, e.g. daily/monthly, flow, average, domestic vs cross-border, etc.) b. Users or members of these systems or services c. Market share estimate
3. Wholesale payment services
− (Clearing House Automated Transfer System, “CHATS”)
− (Provision of FMI to other FIs)
a. Transaction volume and value, broken down by type (institution, customer, FX) and currency (to specify form, e.g. daily/monthly, flow, average, domestic vs cross-border, etc.)
b. Users or members of these systems or services c. CHATS settlement institution status
d. Liquidity arrangement and other conditions for the AI to perform the settlement institution function (if applicable), including credit facilities, such as intra-day repo, offered to the participating members by the AI as the settlement institution of the payment system for enhancing the intraday liquidity management of the system e. Market share estimate
4. Settlement services
− (Central Moneymarkets Unit (“CMU”) and Central Clearing and Settlement System (“CCASS”))
a. Transaction volume and value, broken down by types of securities and currency
b. Users or members of these systems or services c. Market share estimate
5. Custody services a. Client assets and money held b. Market share estimate 6. Other related services including
third-party operational services (such as credit card systems, cheque processing, collateral management, FMI access for third parties, treasury and cash management services)
a. Description of service b. Number of clients c. Market share estimate
Supervisory Policy Manual
RE-2 Resolution Planning
V.1 – draft for consultationFunction category Products and services Requested information D. Wholesale funding
markets
1. Securities financing, including:
− Repos (by type: bilateral/tripartite, currency)
− Reverse repos (by type:
bilateral/tripartite, currency)
a. Transaction volume and value b. Outstanding balances c. Market share estimate
2. Wholesale lending and borrowing (by type: secured/unsecured, product, counterparty, currency)
a. Transaction volume and value b. Outstanding balances c. Market share estimate 3. Securities lending (by type:
direct / third party / agent)
a. Transaction volume and value b. Outstanding balances c. Market share estimate E. Capital markets &
Investments
1. Debt securities markets (including primary and secondary markets and split by product and by currency)
a. Transaction volume and value of debt securities (by platform)
b. Transaction volume and value of funds (by platform) c. Outstanding balances
d. Market share estimate 2. Other securities markets
(including primary and secondary markets and split by product)
a. Transaction volume and value b. Outstanding balances c. Market share estimate 3. Derivatives (by type: equities,
sovereign credit, non-sovereign credit products, rates, foreign exchange, commodities; and by clearing method: exchange-traded / OTC cleared through CCPs / OTC cleared bilaterally)
a. Total notional outstanding b. Gross market value
c. Total number of counterparties d. Market share estimate
4. Asset Management a. Number of clients b. Assets under management c. Market share estimate
5. Insurance a. Number of policies
b. Premium revenue c. Market share estimate