Climate change: Hong Kong Monetary Authority to roll out risk assessment platform for banks, workforce training programmes

Name: Cop28 prepares temperature check on climate at Dubai meeting
Uploaded: 2024-02-26T23:00:29.000Z
Duration: 7 min 25 s
Description: Cop28 prepares temperature check on climate at Dubai meeting

The de facto central bank is developing a cloud-based platform for banks to analyse the risk to their property assets in different climate scenarios

It has asked the Hong Kong Institute of Bankers to introduce a programme to develop talent in green and sustainable finance

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The de facto central bank is developing a cloud-based platform for banks to analyse the risk to their property assets in different climate scenarios. Photo: Sam Tsang

Aileen Chuang

Published: 7:00am, 27 Feb 2024

The Hong Kong Monetary Authority is expanding its role as a banking supervisor by addressing the pain points faced by the industry when managing climate risk, including setting up an online risk assessment platform and training the workforce.

The authority has been developing the cloud-based physical risk assessment platform for banks to analyse the risk to their property assets in different climate scenarios – a rare initiative from a regulatory body, according to Arthur Yuen Kwok-hang, deputy chief executive at the HKMA.

“We have developed a physical risk assessment engine that will be rolled out pretty soon for banks to use, helping them to assess physical risk in the next five, 10, 20, 50 years for a particular exposure to a property in Hong Kong,” Yuen said.

In addition, the HKMA is trying to build green and sustainable finance expertise in the banking industry.

It has asked the Hong Kong Institute of Bankers to introduce a programme under the Enhanced Competency Framework on Green and Sustainable Finance to develop talent. The programme, which has been designed with input from the industry, will be unveiled soon, Yuen said.

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Cop28 prepares temperature check on climate at Dubai meeting

“Green is perhaps one of the most challenging aspects in terms of capacity building because it requires such a diversity of skill sets to be put together in financial institutions,” said Yuen.