The Hong Kong Monetary Authority (HKMA) has published its *2025 Year-end Review and Priorities for 2026*, outlining key supervisory achievements and the regulatory roadmap ahead. The report underscores sustained focus on banking stability, technological resilience, anti-money laundering upgrades, and green finance integration.

1. Banking System Resilience and Credit Risk Management

The HKMA reported that the banking system remained robust throughout 2025, with capital adequacy and liquidity ratios within healthy ranges. Credit risk was described as “manageable,” supported by close monitoring of asset quality and proactive scrutiny of emerging risks. Authorities maintained a pragmatic approach to corporate financial distress, while continuing to facilitate SME lending, business transformation, and intellectual property financing.

2. Operational Resilience and Cybersecurity Advancement

All authorised institutions remain on track to achieve full operational resilience by end-May 2026, guided by targeted supervisory engagement. On cyber and third-party risks, the HKMA implemented C-RAF 2.0 and the Secure Tertiary Data Backup regime, issued enhanced guidance on cloud adoption, and advanced the development of Hong Kong’s first cross-sectoral Cyber Map. Preparatory work is underway for the 2026 implementation of the Protection of Critical Infrastructures (Computer Systems) Ordinance.

3. AML/CFT, Fraud Prevention, and Consumer Protection

The HKMA adopted a more direct and proactive approach to AML supervision in 2025. Legislative amendments now provide legal gateways for bank-to-bank information sharing, and the Enhanced FINEST platform was rolled out with the Hong Kong Police. Banks were encouraged to adopt artificial intelligence for suspicious transaction monitoring, and on-site examinations were doubled.

Fraud prevention remains a key priority, with an intensified “Anti-Scam Campaign” scheduled for 2026. Consumer protection measures were strengthened across digital assets, cross-boundary wealth management, insurance selling, and the Mandatory Reference Checking Scheme (Phase 2). The HKMA also committed to reinforcing customer-centric culture and introducing cross-sector reference checking.

4. Policy Development and 2026 Strategic Priorities

A new prudential framework for cryptoassets took effect on 1 January 2026. In sustainable finance, the HKMA published Phase 2A of the Hong Kong Taxonomy for Sustainable Finance and launched a second consultation on transition planning guidelines.

For 2026, priorities include upgrading the prudential supervisory framework via legislative amendments, enhancing banks’ risk management amid digitalisation-driven liquidity stress, and advancing conduct supervision on generative AI, cross-border payments, and financial inclusion. In the AML space, the HKMA will pursue a “understand and disrupt, enhance and protect, collaborate and share” strategy. Work will also continue on climate risk management, sustainability disclosures, and taxonomy implementation.