Meeting with deputations and the Administration
The Bills Committee received views from four deputations attending the meeting (index of proceedings in Appendix). Their views on the Banking (Amendment) Bill 2017 (“the Bill”) were summarized as follows:
(a) they were generally in support of the Bill as devising a recovery plan by authorized institutions (“AIs”), changing the limitations of AIs’ exposure and repealing obsolete provisions in the Banking Ordinance (Cap. 155) would strengthen the reliability of Hong Kong’s banking system to cope with severe stress and were in accordance with the latest international standards on banking regulation issued by the Financial Stability Board (“FSB”) and the Basel Committee on Banking Supervision (“BCBS”);
(b) most of the banks in Hong Kong had already prepared their own recovery plans to follow the standards relating to recovery planning issued by FSB in 2014; and
(c) the Administration should allow sufficient time for AIs to prepare for the implementation of the new BCBS large exposures framework according to the internationally agreed timetable (i.e. by 1 January 2019).
The Administration’s response to the deputations’ views expressed above were as follows:
(a) as most of the banks in Hong Kong had already developed their recovery plans setting out the measures that they could take to stabilize and restore their financial resources and viability in the event that they came under severe stress, a sound foundation had been laid down for implementing the proposed amendments in the Bill; and
(b) the Administration would keep close communication with the banking industry to address AIs’ concerns about the timeframe for their implementation of the new BCBS large exposures framework in accordance with the internationally agreed timetable (i.e. by 1 January 2019).
Meeting with the Administration
Clause-by-clause examination of the Bill
The Bills Committee completed clause-by-clause examination of the Bill and would not propose any amendments to the Bill. The Administration indicated that it planned to resume the Second Reading debate on the Bill in January 2018, and would inform members on the proposed date later. The – 6 – Action Chairman would report the Bills Committee’s deliberations to the House Committee in due course. (Post-meeting note: The Chairman reported the deliberations of the Bills Committee at the House Committee meeting on 12 January 2018. The Administration resumed the Second Reading debate and Third Reading of the Bill at the Council meeting of 24 January 2018.)
There being no other business, the meeting ended at 11:01 am.