The Great Financial Crisis clearly identified that recovery and resolution planning needed to be a high priority for both banks and regulators. Initially, the focus was on recovery planning, but it is now shifting to resolution. Hong Kong introduced the Financial Institutions (Resolution) Ordinance (FIRO) in 2016, with the goal of establishing a regime for the orderly resolution of financial institutions, thereby avoiding or mitigating risks otherwise posed by their non-viability to the stability of the Hong Kong financial system.

Resolution planning will play a key role in a financial institution’s risk management framework and pose new challenges – and opportunities. It is essential for banks to understand clearly how to navigate the regulatory requirements and what to focus on to meet each of these specific challenges.

This flyer looks at the elements of resolution planning, how it can impact banks, and how KPMG China can help.