eddie yue : remarks at media standup remarks by mr eddie yue, chief executive of the hong kong monetary authority, at the media standup, hong kong, 7 july 2023. * * * today i would like to announce that, after careful consideration, the hong kong monetary authority ( hkma ) has decided to adjust the countercyclical macroprudential measures for property mortgage loans. since the measures were implemented in 2009, the hkma has been closely monitoring market conditions, including property prices and transaction volumes, and the local and external economic environment, with the aim of evaluating the need for appropriate adjustments to the measures to ensure that banks manage the risks over their property mortgage lending business effectively, and have sufficient capacity to cope with challenges from a sharp correction in property prices. following the covid - 19 pandemic and with interest rates rising, there has been a correction in housing prices in hong kong since 2022. despite a rebound early this year, market data showed that at the end of june housing prices were down 13 % from their peak in 2021. the situation in the non - residential property market was similar. the prices of offices, flatted factories and retail premises fell by 20 %, 8 % and 17 % respectively from their peaks in 2018 - 2019. externally, as major economies continue to face high inflationary pressures, interest rates may remain elevated for some time. any slow - down in the global economy due to high interest rates would inevitably affect the local economy. taking all relevant factors into account, the hkma has decided to make several adjustments to the countercyclical macroprudential measures for property mortgage loans, while continuing to maintain banking stability and ensuring the proper risk management of property mortgage loans. these adjustments include : adjusting the maximum loan - to - value ( ltv ) ratio for self - occupied residential properties. the maximum ltv ratio for residential properties with a value of hk $ 15 million or below will be increased to 70 %. for properties valued at more than hk $ 15 million and up to hk $ 30 million, the maximum ltv ratio will be increased to 60 %. for residential properties with a value above hk $ 30 million, the maximum ltv ratio will remain unchanged at 50 %. to avoid a sudden drop in applicable ltv ratios, ratios for properties in certain value ranges will change gradually. the maximum ltv ratio for non - self - use residential properties will remain unchanged at 50 %. increasing the maximum ltv ratio for

yiu - kwan choi : basel ii implementation in asia introductory remarks by mr yiu - kwan choi, deputy chief executive ( banking ) of the hong kong monetary authority, at the bcbs / fsi / emeap : basel ii implementation in asia, hong kong, 17 october 2007. * * * dear colleagues, good morning. on behalf of the hkma, i would like to extend a very warm welcome to you all here today to take part in this outreach event organized jointly by the basel committee, the fsi and emeap, focusing on the irb validation aspect of the basel ii framework. the event coincides with one of the regular meetings of the validation subgroup of the basel committee ’ s accord implementation group, which was held here over the last two days. the validation subgroup, or the aigv as it is commonly called, is one of three subgroups under the aig that share information and discuss specific issues related to basel ii implementation. the aigv specifically explores issues related to the validation of systems used to generate the ratings and parameters that serve as inputs into the internal ratingsbased approach to credit risk. the aigv has done some excellent work, using the regular aigv meetings as an information dissemination platform for members of this subgroup to explore various irb validationrelated issues. the aigv has also published several high quality supervisory guidance papers covering topics on validation of low - default portfolios, use of vendor products, use test and control expectations for validation under the basel ii irb framework. these topics, as i understand, will be discussed this afternoon under the two scheduled working group sessions. to broaden the geographical reach of the large pool of useful reference documents on irb - related issues produced for its meetings or contributed by the member jurisdictions, the aigv has developed an electronic library on ebis to store these documents for access by the supervisory community. the hosting of this event is well timed, as some jurisdictions have already entered into the implementation phase of the basel ii irb framework and other jurisdictions, including many from asia, are in the pipeline for the introduction of the framework for adoption by their banks. the event is therefore a good opportunity for representatives of jurisdictions which have yet to adopt basel ii to hear from jurisdictions already implementing the framework about the emerging issues, and to facilitate future communications on this topic among participants. as chairman of the emeap working group on banking supervision, the hkma certainly welcomes the opportunity