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Best Systemic and Prudential Regulator in Asia Pacific - Hong Kong Monetary Authority

Written by William De Vijlder  
  • Jul 21, 2022
  • 3 min read

Hong Kong Monetary Authority continues to bolster the territory’s position as a leader in green and sustainable finance. In December 2020, co-chaired by the Authority and Securities & Futures Commission, it published a long-term strategic plan with action points which aim to coordinate the management of climate and environmental risks, accelerate the growth of green and sustainable finance and support the government’s climate strategies.

Launched in January 2021, the climate risk stress test is intended to assess the climate resilience of the banking sector as a whole and facilitate the capability building of banks for measuring climate risks. Twenty major retails banks and seven branches of international banking groups participated, accounting for 80% of the banking sector’s total lending.

Hong Kong Monetary Authority’srobust capital and liquidity positions continue to provide strong buffers for banks to withstand shocks. The consolidated total capital ratio of locally incorporated authorised institutions stood at a high 20.2% at the end of 2021, well above the minimum international standard. 

For building a more sustainable and resilient growth model in the long term and preparing for other high-impact risks, The Best Systemic and Prudential Regulator in Asia Pacific Award goes to Hong Kong Monetary Authority.