The Hong Kong Monetary Authority ("HKMA") will set up a resolution office on 1 April, as part of the regulator's plan to ensure the Hong Kong resolution regime is operational for banks under the Financial Institutions (Resolution) Ordinance, which was enacted in June 2016.
The office will establish resolution policy standards for banks, define resolution strategies and conduct resolvability assessments of banks, work with banks to remove impediments to their orderly resolution, and develop the operational capability necessary to execute orderly resolution, the HKMA said.
The office will be headed up by Stefan Gannon, who is currently the general counsel of the HKMA.
Gannon's role as general counsel will be filled by Karen Kemp, the current executive director for banking policy. Meanwhile, Daryl Ho, a division head of the HKMA, will succeed Kemp.
"The establishment of the resolution office within the HKMA marks a milestone in the development of an operational resolution regime in Hong Kong and our efforts to implement the international standard to address the 'Too Big to Fail' problem for the financial system," said Norman Chan, the chief executive of the HKMA. "It will promote Hong Kong's position as a major international financial centre whilst at the same time minimising the risks posed to taxpayers from the failure of a systemically important financial institution."