Recalibrated Collateral and Guarantee Requirements: Enhanced CR-G-7

In June 2024, the HKMA published a consultation on proposed revisions to the Supervisory Policy Manual (SPM) module CR-G-7 “Collateral and Guarantees”.

This update (subject to any post consultation changes) will supersede the previous CR-G-7 SPM (2001) and provide guidelines on the use of collateral and guarantees for credit risk management purposes. While the guidance does not seek to replace any specific Banking Capital Rules, this update attempts to strengthen Authorised Institutions (AI) management over collateral, guarantees and Credit Risk Mitigation (“CRM”). Our flyer guides Authorised Institutions through the key changes they need to keep on their radar. 

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