Hong Kong – Designation of Domestic Systemically Important Authorized Institutions

Designation of Domestic Systemically Important Authorized Institutions

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The following is issued on behalf of the Hong Kong Monetary Authority:

 

     The Hong Kong Monetary Authority (HKMA) has completed its annual assessment of the list of Domestic Systemically Important Authorized Institutions (D-SIBs). As with previous years, the assessment takes into account the size, interconnectedness, substitutability and complexity of authorised institutions. Based on the assessment results, the total number of D-SIBs has decreased from six to five. The Bank of East Asia, Limited is no longer identified as a D-SIB in this assessment considering its systemic importance relative to other institutions. The updated list of D-SIBs, which will take effect on January 1, 2022, is shown in the Annex.

      

     Under the D-SIB framework, each of the authorised institutions designated as a D-SIB will be required to include a Higher Loss Absorbency (HLA) requirement into the calculation of its regulatory capital buffers within a period of 12 months after the formal notification of its designation. The HLA requirement applicable to a D-SIB (expressed as a ratio of an authorised institution’s Common Equity Tier 1 (CET1) capital to its risk-weighted assets as calculated under the Banking (Capital) Rules) ranges between 1 per cent and 3.5 per cent (depending on the assessed level of the D-SIB’s systemic importance).

      

     Compared to the list of D-SIBs published on December 30, 2020, there is no change to the HLA requirements applied to the five designated D-SIBs. 

 

     Further details about the decision can be found on the HKMA website (Systemically Important Authorized Institutions (SIBs)).

 

Background

 

(1) D-SIB framework in Hong Kong

 

     The Banking (Capital) Rules and the HKMA’s regulatory framework for D-SIBs follow the provisions in “A framework for dealing with domestic systemically important banks” issued by the Basel Committee on Banking Supervision in October 2012, by enabling the Monetary Authority (i) to designate an authorised institution as a D-SIB if the Monetary Authority considers the authorised institution to be of systemic importance in the context of the Hong Kong banking and financial system and (ii) to require an authorised institution designated as a D-SIB to be subject to an HLA capital buffer.

      

     The rationale for imposing an HLA requirement on D-SIBs is to reduce any probability of them becoming non-viable. This is considered both prudent and justified in view of the greater impact that they could have, in the unlikely event of their failure, on the domestic financial system and the local economy more broadly. 

 

(2) HLA requirement for authorised institutions designated as D-SIBs

 

     The Monetary Authority is empowered under sections 3U and 3V of the Banking (Capital) Rules to designate D-SIBs and to determine an HLA requirement for each of these D-SIBs by reference to the degree of domestic systemic importance which the Monetary Authority assesses them to bear. To achieve this aim, the HKMA’s regulatory framework for D-SIBs provides for authorised institutions designated as D-SIBs to be allocated to different HLA “buckets”. This differentiated approach reflects the diversified nature and varying degrees of systemic importance of authorised institutions in Hong Kong.

      

     The designated D-SIBs must apply the HLA in the calculation of their regulatory capital buffers within 12 months of the formal notification of their designation. There are five HLA buckets in total ranging from 1 per cent to 3.5 per cent. While only the first four buckets (i.e. from 1 per cent to 2.5 per cent) have been populated so far, the framework includes an empty 3.5 per cent bucket to encourage D-SIBs to refrain from becoming even more systemically important.

      

     The HLA applied to a D-SIB serves (together with the Countercyclical Capital Buffer) as an extension of the Basel III Capital Conservation Buffer. Accordingly, if and when a D-SIB’s CET1 capital ratio falls within the extended buffer range, the D-SIB will be subject to restrictions on the discretionary distributions it may make. The effect of this is that D-SIBs will be required to retain earnings in order to bolster their regulatory capital.

Domestic Retail and Wholesale prices of edible oils dropped in India except that of Mustard Oil

While international prices of edible oils are soaring, the domestic market has reported a declining trend in prices with exception, informed Department of Food and Public Distribution (DFPD).

Source – DoCA/SEAI

    Though the international prices of edible oils have gone up in the range of 1.95% to 7.17% after the import duty reduction, the decreasing trend in domestic prices and net effect (ranges for 3.26% to 8.58% declined) after duty reduction is quite substantial. Necessary policy intervention by Central Government with reference to duty reduction is proving to be beneficial for the general consumers.

  International Prices of Soyabean oil, Sunflower Oil, Crude Palm Oil and RBD Palmolein increased by 1.85%, 3.15%, 8.44 and 10.92% respectively over the month. After the import duty reduction (w.e.f. 11.09.2021) on imported edible oils, domestic retail and wholesale prices reduced in the range of 0.22% to 1.93%. However, Mustard Oil is purely domestic oil and its prices are expected to soften with number of other measures the Government is contemplating.

 Similarly, the wholesale and retail price of Wheat decreased by 5.39% and 3.56% respectively over the year. Wholesale price of Rice decreased by 0.07% while retail price of rice increased by 1.26% over the month.

The Wholesale and Retail prices of Wheat decreased by 7.12% and 4.37% respectively over the year.

     Despite the fact that MSP for Rice & Wheat has gone up (from Rs. 1868/Qtl. to Rs. 1940/Qtl. for Rice and from Rs. 1925/Qtl. to Rs. 1975/Qtl for Wheat) the price of rice and wheat has decreased in the market which is a comforting factor for consumers.

Notably, as on 06.10.2021, taking the reference as on 17.5.2021, the retail prices of gram, tur, urad and moong decreased by 1.08%, 2.65%, 2.83% and 4.99% respectively.

Regarding prices of Onion, Potato and Tomato, the All-India average retail prices of potato decreased by 44.77% over the year.

The All India average retail prices of onion decreased by 17.09% over the year.

The All India average retail prices of tomato decreased by 22.83% over the year.

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DJN/NS

(Release ID: 1762189)
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Share of Domestic Production in Consumption of Finished Steel Increasing

The following details of consumption and share of domestic production and import in the consumption of finished steel during the last three years and current year indicate that the share of domestic production in the consumption of finished steel has been increasing:-

Finished Steel (in million tonnes)

Year

Consumption

Production

Import

% Share of Import in consumption

% Share of Domestic Production in Consumption

2018-19

98.71

101.29

7.84

7.9

92.1

2019-20

100.17

102.62

6.77

6.8

93.2

2020-21

94.89

96.20

4.75

5.0

95.0

April-June, 2021*

24.85

26.23

1.16

4.7

95.3

Source: JPC; *provisional

The details of export and import of finished steel during last three years and current year as given below indicate that India has been a net exporter of finished steel since 2019-20.

Finished Steel (in million tonnes)

Import

Export

2018-19

7.84

6.36

2019-20

6.77

8.36

2020-21

4.75

10.78

April- June, 2021*

1.16

3.56

Source: JPC; *provisional

The demand for steel in the country is predominantly met by domestic production and the percentage share of import in consumption has been gradually declining for last three years.

This information was given by the Union Minister for Steel Shri Ram Chandra Prasad Singh in a written reply in the Lok Sabha today.

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SS/SK

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Read this release in:

Urdu


Conquering Domestic Violence, Jamie Wright, CEO & Founder of Jamie R. Wright, LLC, Shares Her Story of Bouncing Back After Domestic Violence in the Midst of COVID-19

In this power-packed episode of power of resilience, Jamie R. Wright digs deep into her own experiences and recounts how she triumphed and bounced back from domestic violence amid COVID-19. It has been told that the message will be a part of the Resilient Stories Podcast anchored by Dr. Tommy Watson. Excerpts from the episode suggest that the encounter will be massive as it uncovers the plight of many, especially during the coronavirus-induced lockdown.

In this episode, Jamie R. Wright reveals how scary and hard it is to cope with domestic abuse at a time when movement was restricted and the world was busy trying to stay alive. She highlighted that keeping the right attitude was crucial to helping her fight the ugly situation effectively after the pandemic.

She urges everyone who is suffering domestic abuse or any form of oppression to remember that they always have a choice to make.

In her own words, she said, “Every individual has the power to choose their fate and stand by it. The ability to change your worldview lies in you. You are not a victim but a victor.”

As a victor from her battle against domestic violence and abuse, Jamie has learned from first-hand experience that everyone has their future in their hands. She admitted that some choices may be tough to make, especially when there is a lot of pain involved, but she quickly highlighted that making these tough scary decisions are all it takes to triumph over abuse.

She said, “Simply put, your future is in your hand. What you make out of it depends on you. Determination is all that matters. You choose your destiny; no one can determine it for you.”

Overall, Jamie’s message to listeners and readers is an encouragement to people to choose their fate correctly and not allow any human being to control them. She encourages her audience to build themselves up and interact with people that will help sharpen the way that they see things. Away from domestic violence and abuse, she highlights that a positive mindset is necessary to achieving one’s life goals.

For more on this, tune in to listen to the powerful conversation of how victimized people can find their strength and learn of the power that they have in them and not be victims. Visit Dr. Watson’s website at T.A. Watson |Speaker | Coach | Consulting.

To learn more, visit: https://jamierwright.com//

Highest number of domestic passengers since resumption of flights

Number of domestic passengers on 12th February 2021 rose to 2,97,102 on 2,349 flights, Shri Hardeep S Puri, MoS, I/C, Civil Aviation said. He added that this is the highest since resumption of domestic flights on 25th May 2020. Shri Puri informed that with air travel emerging as a preferred mode of travel due to safety, efficiency and time saving, the numbers are almost touching Pre-COVID levels.

Total flight movements of 12th February 2021 were 4697. The total number of footfalls on airports was 5,93,819.

In the wake of Covid-19 pandemic, domestic flight operations were ceased with effect from midnight (11:59 pm) of 24th March 2020. The operation resumed after two months on 25th May 2020.