In December 2018, the HKMA announced a set of supervisory directives relating to bank culture.1 This followed its March 2017 guidance for developing and promoting a sound corporate culture, which featured three pillars: (1) governance; (2) incentive systems; and (3) assessment and feedback.2
The December directive had three components: (1) requiring the banks to conduct a self-assessment; (2) conducting focus reviews; and (3) undertaking culture dialogues. As for the self-assessments, the HKMA indicated that they would occur in phases, with the first phase covering about 30 of the largest retail banks and foreign bank branches with substantial operations in Hong Kong. It’s expected that the assessments will take no more than six months.
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