A Regulatory Design for Financial Stability in Hong Kong

In Hong Kong, the banking system is the primary source of financial stability risk. Post-2008 regulatory reforms have focused on financial stability policies and tools while neglecting the design of supervisory models. This book provides a comparative analysis of how supervisory models affect the management of financial stability regulations in Hong Kong's banking system. Regulatory issues discussed span prudential regulations, systemically important banks, unconventional liquidity tools, deposit insurance, lender of last resort, resolution regimes, central clearing counterparties and derivatives, Renminbi infrastructure, stock and bond connect schemes, distributed ledger technology, digital yuan, US dollar sanctions, cryptocurrencies, RegTech, and FinTech.

A Regulatory Design for Financial Stability in Hong Kong elucidates the flaws and synergies in Hong Kong's banking regulatory framework and proposes conventional and innovative regulatory reforms. This book will be of great interest to banking, financial, and legal practitioners, central bankers, regulators, policy makers, finance ministries, scholars, researchers, and policy institutes.

table of content

Part I. A Financial History of Hong Kong:

1. Introduction

2. Hong Kong 1841-1997: financial crises and financial regulation

3. Hong Kong Special Administrative Region: financial crises and financial regulation

Part II. The Regulatory Models of Financial Supervision:

4. The sectoral supervisory model: central banks, banking regulations and financial stability

5. Integrated, twin peaks, and systemic risk supervision for financial stability

Part III. Contemporary Regulatory and Supervisory Approaches:

6. Conceptualizing financial stability during financial crises: liquidity and systemic risk

7. Financial regulation for a sustainable economy: financial stability approaches

Part IV. Banking Regulation and Supervision in Hong Kong:

8. Bank regulation and supervision: Basel III and systemic risk

9. Banking systems and financial stability: monetary policy and unconventional liquidity tools

Part V. Resolution Regimes and Crisis Management Mechanisms:

10. Deposit protection and the lender of last resort

11. Resolution regimes and systemically importance banks

12. Central clearing counterparties and derivatives: financial regulation and resolution regume

Part VI. Financial Market Integration with the Mainland:

13. China's International Financial Centre, Renminbi infrastructure and cross-boundary regtech

14. Dollar sanctions, the digital yuan and regulating fintech

Conclusion