The Hong Kong Monetary Authority has issued proposals requiring banks to raise disclosure levels in their financial reports.
The consultation paper released last night to two banking associations aims to upgrade reporting requirements following changes by international banking regulator Basel Committee, the Hong Kong stock exchange, and the International Accounting Standards (IAS) Board.
It calls for more details on banks' corporate governance arrangements, a breakdown of customers' deposits and detailed information on commission income.
Banks will also be asked to reveal details of their derivative hedging strategies.
If no opposition is raised during the one month consultation, the changes will take effect for the financial periods ending on or after December 31.
Banks will need to show compliance with best-practice corporate governance standards, such as how boards of directors and committees discharge their duties.
