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
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
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
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.