Hong Kong government consults on financial resolution powers

[HONG KONG] The Hong Kong government on Tuesday began a consultation process on new powers the banking, insurance and securities regulators can use to wind down troubled financial institutions.

The proposal outlines how the regulators may use the so-called 'resolution' powers, or emergency measures, to safeguard the Hong Kong financial system in the event a systemically important institution goes bust.

The paper proposes some areas of the financial system that should be subject to special treatment in the event these resolution powers are exercised.

The consultation, which was published by the Hong Kong Financial Services and Treasury Bureau in conjunction with the Hong Kong Monetary Authority, the Securities and Futures Commission and the Insurance Authority, closes in two months'time.

REUTERS