| Journal Call no. | HG1302.Q37 |
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| Article Title | Supervisory guideline on risk management of derivatives. |
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| Is Part Of | Quarterly bulletin / Hong Kong Monetary Authority ; no.7, May 1996, p.21-42, illus. |
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| Abstract | Following consultation with the banking industry, the Hong Kong Monetary Authority (HKMA) issue in March 1995 a guideline on risk management of derivatives and other traded instruments. Supplementing an earlier guideline based on the Basle Committee recommendations, this new guideline is mainly based on observations from treasury visits and surveys conducted by the Monetary Authority and the lessons learned from the cases of Barings and Daiwa Bank. The Monetary Authority expects all authorised institutions and the subsidiaries of all locally incorporated authorised institutions which engage in the trading of financial instruments to follow the risk management practices set out in the guideline. The new Guideline is reproduced in the article. Diagram is used to illustrates the general concept of the risk management process discussed in the Guideline. |
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