FREE: HKMA to speak out on failing banks’ resolution frameworks

Author: | Published: 17 Feb 2012
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HKMA to speak out on failing banks’ resolution frameworks

The general counsel of the Hong Kong Monetary Authority (HKMA) is set to outline what he believes to be the most important components of a framework for the resolution of an ailing financial institution.

Stefan Gannon, keynote speaker at IFLR Asia M&A Forum in Hong Kong on February 22, said financial institutions’ resolution regimes should be clear and transparent as to the firms within its scope. "To keep the institution functioning as one of the arteries within the system should be our objective," he said.

Ensuring a framework is able to place a failing institution into resolution before it became insolvent is one of the most important components to any such framework, he said.

Gannon will elaborate on what other vital elements could be incorporated into a resolution framework, and discuss why Hong Kong’s incoming Anti-Money Laundering and Counter-Terrorist Financing

Ordinance is relevant to the merger and acquisition of financial institutions at IFLR’s Asia M&A Forum. To find out more about this event, click here for a full agenda.

Gannon’s comments follow the publication, in November, of the Financial Services Board’s new standard 'Key Attributes of Effective Resolution Regimes for Financial Institutions’, which aims to address the 'too-big-too-fail’ problem by making it possible to resolve any financial institution in an orderly manner and without exposing the taxpayer to the risk of loss.

The HKMA has worked with the FSB and International Monetary Fund on the resolution of SIFIs [Systemically Important Financial Institutions], Gannon explained.

He believes such regulatory harmonisation may become more commonplace. Find out why at IFLR’s Asia M&A Forum on February 22. Click here for a full agenda.