Designation of Domestic Systemically Important Authorized Institutions
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). Based on the assessment results, the list of authorized institutions designated as D-SIBs remains unchanged compared to the list of D-SIBs published by the HKMA on December 31, 2024. The latest list of D-SIBs is shown in the Annex.
Under the D-SIB framework, each of the authorized 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 authorized 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 3.5per cent (depending on the assessed level of the D-SIB's systemic importance). Compared to the list of D-SIBs published on December 31, 2024, there is no change to the HLA requirements applied to the 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 authorized institution as a D-SIB if the Monetary Authority considers the authorized institution to be of systemic importance in the context of the Hong Kong banking and financial system and (ii) to require an authorized 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 authorized 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 authorized 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 authorized 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 1per cent to 3.5 per cent. While only the first four buckets (i.e. from 1per cent to 2.5 per cent) have been populated so far, the framework includes an empty 3.5per 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.
HKMA, Photo source: reference image
FEHD releases fifth batch of gravidtrap indexes for Aedes albopictus in December
The Food and Environmental Hygiene Department (FEHD) today (December 31) released the fifth batch of gravidtrap indexes and density indexes for Aedes albopictus in December, covering 15 survey areas, as follows:
District |
Survey Area |
December 2025 |
First Phase Gravidtrap Index |
First Phase Density Index |
Kowloon City |
Hung Hom |
1.8% |
1.0 |
Kwun Tong |
Kwun Tong Central |
0.0% |
N/A |
Yau Tong and Cha Kwo Ling |
0.0% |
N/A |
Yuen Long |
Yuen Kong |
0.0% |
N/A |
Ki Lun Shan |
0.0% |
N/A |
Sung Shan |
0.0% |
N/A |
Tsuen Wan |
Tsuen Wan West |
1.9% |
1.0 |
Kwai Tsing |
Tsing Yi South |
0.0% |
N/A |
Tsing Yi North |
0.0% |
N/A |
District |
Survey Area |
December 2025 |
Area Gravidtrap Index |
Area Density Index |
Eastern |
Shau Kei Wan and Sai Wan Ho |
0.0% |
N/A |
Islands |
Cheung Chau South |
1.4% |
1.0 |
Kowloon City |
Lok Fu West |
0.0% |
N/A |
Kwun Tong |
Kowloon Bay |
0.0% |
N/A |
North |
Fanling |
0.0% |
N/A |
Tsuen Wan |
Tsuen Wan Town |
0.0% |
N/A |
Among the fifth batch of First Phase Gravidtrap Indexes covering nine survey areas and Area Gravidtrap Indexes covering six survey areas in December, all were below 10 per cent, and most of the areas recorded zero per cent, indicating that the distribution of Aedes albopictus mosquitoes was not extensive.
The FEHD has so far released five batches of gravidtrap indexes for Aedes albopictus in December 2025, covering 64 survey areas. Among these 64 survey areas, 60 recorded a decrease or remained unchanged in the individual gravidtrap index compared to the Area Gravidtrap Index last month, i.e. November 2025, representing that the areas' mosquito infestation improved or maintained a low level. Four other areas recorded a slight increase, but the indexes were lower than 10 per cent.
The eggs of Aedes albopictus can withstand long periods of desiccation and will hatch when the temperature becomes suitable and water is present. Members of the public should continue to take mosquito control measures during winter to eliminate mosquito eggs.
Public participation is crucial to the effective control of mosquito problems. The FEHD appeals to members of the public to continue to work together in strengthening personal mosquito control measures, including:
tidy up their premises and check for any accumulation of water inside their premises;
remove all unnecessary water collections and eliminate the sources;
check household items (those placed in outdoor and open areas in particular), such as refuse containers, vases, air conditioner drip trays, and laundry racks to prevent stagnant water;
change the water in flower vases and clear the water in saucers of potted plants at least once every seven days;
properly cover all containers that hold water to prevent mosquitoes from accessing the water;
properly dispose of articles that can contain water, such as empty lunch boxes and cans; and
scrub drains and surface sewers with alkaline detergent at least once a week to remove any mosquito eggs.
Starting in August this year, following the completion of the surveillance of individual survey areas, and once the latest gravidtrap index and the density index are available, the FEHD has been disseminating relevant information through press releases, its website and social media. It aims to allow members of the public to quickly grasp the mosquito infestation situation and strengthen mosquito control efforts, thereby reducing the risk of chikungunya fever (CF) transmission.
Following recommendations from the World Health Organization and taking into account the local situation in Hong Kong, the FEHD sets up gravidtraps in districts where mosquito-borne diseases have been recorded in the past, as well as in densely populated places such as housing estates, hospitals and schools to monitor the breeding and distribution of Aedes albopictus mosquitoes, which can transmit CF and dengue fever. At present, the FEHD has set up gravidtraps in 64 survey areas of the community. During the two weeks of surveillance, the FEHD will collect the gravidtraps once a week. After the first week of surveillance, the FEHD will immediately examine the glue boards inside the retrieved gravidtraps for the presence of adult Aedine mosquitoes to compile the Gravidtrap Index (First Phase) and Density Index (First Phase). At the end of the second week of surveillance, the FEHD will instantly check the glue boards for the presence of adult Aedine mosquitoes. Data from the two weeks of surveillance will be combined to obtain the Area Gravidtrap Index and the Area Density Index. The gravidtrap and density indexes for Aedes albopictus in different survey areas, as well as information on mosquito prevention and control measures, are available on the department's webpage (www.fehd.gov.hk/english/pestcontrol/dengue_fever/Dengue_Fever_Gravidtrap_Index_Update.html#).
Source: AI-found images
