Hong Kong, leading financial centre in Asia
Caproasia.com | The leading source of data, research, information & resource for financial professionals, institutional investors, professional investors and private investors (UHNWs, & HNWs). Covering capital markets, investments and private wealth in Asia. How do you invest $3 million to $300 million? How do you manage $20 million to $3 billion of assets?

This site is for accredited investors, professional investors, investment managers and financial professionals only. You should have assets around $3 million to $300 million or managing $20 million to $3 billion.





Hong Kong Central Bank Pilot Climate Risk Stress Test: Resilient, But Take Early Actions to Manage Extreme Scenarios

31st December 2021 | Hong Kong

The Hong Kong Central Bank Hong Kong Monetary Authority (HKMA) has published the result of its its pilot climate risk stress test (CRST).  The results showed that under extreme scenarios, climate risks could potentially cause significant adverse impacts on the banking sector and that banks need to take early actions to manage them.  However, the overall assessment indicated that the banking sector remained resilient to climate-related shocks given the strong capital buffers built up by the banks over the years.  The Climate Risk Stress Test (CRST) was launched in January 2021 to assess the climate resilience of the Hong Kong banking sector and facilitate the capability building of banks for measuring climate risks.  20 major retails banks and 7 branches of international banking groups participated, accounting for 80% of the banking sector’s total lending.  Participating banks assessed their climate risk exposures under 3 scenarios: a physical risk scenario involving a worsening climate situation and 2 scenarios envisaging orderly and disorderly transitions to a low-emission economy.

“ Hong Kong Pilot Climate Risk Stress Test: Resilient, But Take Early Actions to Manage Extreme Scenarios “

Hong Kong Climate Risk Stress Test

Hong Kong SAR 1
Hong Kong, leading financial centre in Asia

The Climate Risk Stress Test (CRST), launched in January 2021, aims to assess the climate resilience of the Hong Kong banking sector as a whole and facilitate the capability building of banks for measuring climate risks.  20 major retails banks and 7 branches of international banking groups participated, accounting for 80% of the banking sector’s total lending.  Participating banks assessed their climate risk exposures under 3 scenarios: a physical risk scenario involving a worsening climate situation and 2 scenarios envisaging orderly and disorderly transitions to a low-emission economy.



2021 Data Release
2020 List of Private Banks in Hong Kong
2020 List of Private Banks in Singapore
2020 Top 10 Largest Family Office
2020 Top 10 Largest Multi-Family Offices
2020 Report: Hong Kong Private Banks & Asset Mgmt - $4.49 Trillion
2020 Report: Singapore Asset Mgmt - $3.48 Trillion AUM

Sign Up
Family Office Networking - Monthly
Investment Day - Monthly
Membership | Join a Powerful Network
Professional Investor Circle
Family Office Circle
Caproasia User
Caproasia Events


The CRST results showed that the extreme climate scenarios assumed in the exercise would lead to a material reduction in the participating banks’ profitability due to an upsurge in expected credit losses from their exposures directly affected by climate change, such as residential mortgages and lending to high-emitting industries.  Climate change could also weaken the banks’ capital positions.  The capital adequacy ratio of the domestic systemically important authorized institutions, for instance, would drop by 3 percentage points on average over the 5-year horizon under the disorderly transition scenario.  Some parts of the banks’ operations would be affected by the more intense climate hazards under the physical risk scenario.

The exercise has provided useful insights into the climate risk profile of the banking sector.  The participating banks also benefited from a substantial strengthening of their capabilities for measuring and assessing climate risks.  A discussion forum organised by the HKMA earlier this year helped facilitate this process by providing a knowledge-sharing platform within the industry.

In light of the CRST results, the participating banks have developed plans to strengthen their climate strategies and risk governance frameworks.  Measures taken by the banks include the incorporation of a broader range of climate risk factors into their risk assessment frameworks and strategic allocation of additional resources to climate resilient activities, such as green financing and providing transition finance to support their customers’ transition to low-emission business models.

The HKMA will continue to support the industry in capability building and enhance the CRST framework having regard to the lessons learnt from the pilot exercise.  It will explore ways to help the industry overcome major gaps revealed by the pilot exercise, particularly those concerning data availability and assessment methodologies.  The current intention is to undertake another CRST in 2 years’ time.  A report summarising the results of the pilot CRST can be downloaded from the HKMA’s website.



Caproasia.com | The leading financial website for financial professionals, professional investors and HNW investors. Covering capital markets, investments and private wealth in Asia. How do you invest $3 million to $300 million? How do you manage $20 million to $3 billion of assets? Quicklinks: Caproasia Access | TFC | Caproasia | Jobs

Join 14,000+ leading financial professionals and professional investors in Asia. Stay ahead of your peers & competition.
For press release, email to press@caproasia.com
For editorial, media kit, listing on TFC, events, seminars or research & data services, email to mail@caproasia.com


Previous articleWorld Economic Forum 2022 Postponed to Summer Due to Omicron Outbreak
Next articleChina Central Bank Provides $13.4 Billion to Banks for Green Projects Financing
Caproasia.com covering capital markets, investments and private wealth in Asia. Our users manage, advise & invest $25 trillion assets in Asia