The update concerns supervisory guidance on credit card business operations, including credit risk assessment and consumer protection, which falls within the issuing of payment instruments to consumers.
The consultation addresses broader prudential risk management (reputation and strategic risk) applicable to all authorised institutions, with only partial relevance to payments-specific operations.
Specialism
The consultation addresses supervisory policy updates for credit card business, reputation risk, and strategic risk management in Hong Kong's banking sector, but lacks specific payment-firm-focused compliance obligations typical of payments regulation.
The credit card business module touches on consumer protection considerations, but the update is primarily a general banking supervision consultation rather than payments-specific customer protection regulation; requires human review.
2026-04-30 08:40:09·pthandapani@vixio.com
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TITLE: Hong Kong Monetary Authority Consults on Revised Supervisory Policy Manual Modules for Credit Card, Reputation and Strategic Risk Management
BODY:
On April 28, 2026, the Hong Kong Monetary Authority (HKMA) issued a consultation letter to the banking industry on proposed revisions to three Supervisory Policy Manual (SPM) modules: CR-S-5 on "Credit Card Business", RR-1 on "Reputation Risk Management", and SR-1 on "Strategic Risk Management".
The consultation addresses updates to the HKMA's supervisory framework across retail credit risk management, reputation risk governance, and strategic risk oversight. The revised SPM modules will provide updated guidance to authorised institutions on managing credit card business operations, including credit risk assessment and consumer protection considerations. The reputation risk management module will establish expectations for institutions to identify, assess, and mitigate reputational threats arising from business activities and external factors. The strategic risk management module will outline requirements for institutions to develop robust frameworks for identifying and managing risks that could impact their long-term business objectives and viability.
These revisions reflect evolving regulatory expectations and industry developments in risk management practices within Hong Kong's banking sector. The updates are applicable to all authorised institutions conducting credit card business and managing reputation and strategic risks.
The consultation period opened on April 28, 2026, and closes on June 26, 2026. Responses should be submitted to the HKMA by the deadline. The HKMA will review feedback received during the consultation period before finalising the revised SPM modules.
REFERENCES:
Hong Kong Monetary Authority Banking Regulatory Document Repository: https://www.hkma.gov.hk/
HKMA Banking Regulatory Document Repository CPR Current Consultation on revised Supervisory Policy Manual (SPM) modules CR-S-5 on “Credit Card Business”, RR-1 on “Reputation Risk Management” and SR-1 on “Strategic Risk Management” Enclosure 1: Credit Card Business (Consultation) The HKMA issued a letter on 28 April 2026 to consult the banking industry on proposed revisions to the SPM modules CR-S-5 on "Credit Card Business", RR-1 on "Reputation Risk Management" and SR-1 on "Strategic Risk Management". Issue Date: 28 Apr 2026 Consultation Status: OPEN Consultation Open Date: 28 Apr 2026 Consultation Close Date: 26 Jun 2026 20260312-3-EN.pdf (415.3 KB) Topic: Credit Risk Management - Retail credit risk management Group: Specific Directly related Document Cross referenced Document Version History Superseded Document Directly related Document Consultation on revised Supervisory Policy Manual (SPM) modules CR-S-5 on “Credit Card Business”, RR-1 on “Reputation Risk Management” and SR-1 on “Strategic Risk Management” Annex Current 28 Apr 2026 Enclosure 2 - Reputation Risk Management (Consultation) Annex Current 28 Apr 2026 Enclosure 3 - Strategic Risk Management (Consultation) Directly related Document Consultation on revised Supervisory Policy Manual (SPM) modules CR-S-5 on “Credit Card Business”, RR-1 on “Reputation Risk Management” and SR-1 on “Strategic Risk Management” Annex Current 28 Apr 2026 Enclosure 2 - Reputation Risk Management (Consultation) Annex Current 28 Apr 2026 Enclosure 3 - Strategic Risk Management (Consultation) Cross referenced Document Version History Superseded Document You may also be interested in + - CIR Archive 31 Oct 2002 Hong Kong Approach to Consumer Debt Difficulties CIR Current 05 Jan 2006 Supervisory Policy Manual (SPM): CR-S-5 Credit Card Business CIR Current 22 Feb 2002 Bankruptcy and Consumer Credit Lending Clear All Select All Expand All Collapse All AML & CFT AML/CFT Controls Financial Sanctions Tax Matters Related Others Authorization Digital Banking Guide to Authorization Mergers/Takeovers/Restructuring Minimum Criteria for Authorization Money Brokers Three-tier Banking System Others Banking Conduct & Enforcement Account Opening/Maintenance Bank Culture Code of Banking Practice Complaints Consumer Protection Credit Data Sharing Enforcement/Discipline Financial Inclusion Others Business Continuity Planning Business Continuity Planning Capacity Building Enhanced competency framework Others Capital Adequacy Capital Base Capital Buffers CCR Credit Risk (non-securitization exposures) Credit Risk (securitization exposures) Market Risk Operational Risk Pillar 2 SIBs Sovereign Concentration Risk Others Consolidated Supervision Consolidated Supervision Corporate Governance Board Directorship Code of conduct Remuneration Others Credit Risk Management CCR Corporate credit risk management Credit risk transfer/Mitigation Loan classification/Provisioning Property mortgage lending Retail credit risk management Others Disclosure Pillar 3 requirements Others Fintech Commercial data interchange Fintech supervisory sandbox Open API Regtech Smart Banking Suptech Virtual assets Others Green & Sustainable Banking Climate risk management Sustainability reporting standards Others Interest Rate Risk Management Interest Rate Risk Management Internal Controls Compliance function Insourcing/Outsourcing Internal audit function Risk management function Others Large Exposures & Risk Concentrations Connected parties HKMCI-related exposures Limits on credit exposures Others Leverage Ratio Leverage Ratio Liquidity Risk Management Liquidity facilities Sound LRM framework Statutory liquidity requirements Others Mainland Activities Mainland Activities Market Risk Management Algorithmic trading Foreign exchange Others Miscellaneous BCBS Covid-19 challenges Deposit protection FSB SFC/IA/MPFA Others Operational Risk Management Commercial Crime Bureau Fraud risk management Operational and IT incident watch Others OTC Derivatives Clearing Margining/Risk-mitigation Reporting Trading Others Recovery planning Recovery planning Renminbi Renminbi Resolution Resolution execution Resolution framework Resolution planning Resolution standards Strategic & Reputation Risk Management Strategic & Reputation Risk Management Supervisory Approach Supervisory Approach Technology Risk Management Cybersecurity E-banking Fraud risk management Others Treasury market Reform of interest rate benchmarks Others Trust Business Trust Business Wealth Management & MPF Insurance products MPF products Securities/investment products Others Close Search Search Filter Alphabetic Topic Clear All Expand All Collapse All Close Search Search