meta_id 3060764

On April 13, 2026, the Hong Kong Monetary Authority (HKMA) issued a revised Supervisory Policy Manual (SPM) Module IC-5 on "Stress-testing". This update supersedes the previous version dated May 9, 2012, and represents a significant refresh of the HKMA's stress-testing supervisory framework for authorized institutions. The revised module forms part of the HKMA's Internal Controls guidance and applies to all authorized institutions operating in Hong Kong. Stress-testing is a critical component of prudential supervision, enabling banks to assess their resilience to adverse economic scenarios and potential financial shocks. The updated guidance reflects evolving supervisory expectations and international best practices in stress-testing methodologies. The revised SPM Module IC-5 builds on the HKMA's consultation conducted on August 28, 2025, which sought feedback from the banking industry on the proposed changes. The module addresses stress-testing requirements and procedures that authorized institutions must implement as part of their internal control frameworks and risk management practices. Authorized institutions should review the updated guidance and ensure their stress-testing frameworks, processes, and governance structures align with the revised supervisory expectations outlined in the new module. The document is available on the HKMA's Banking Regulatory Document Repository for download and reference. **Reference:** Hong Kong Monetary Authority Banking Regulatory Document Repository – SPM Module IC-5 on Stress-testing (April 13, 2026)