If realized, this approach would allow a firm of systemic importance to choose between holding capital in greater amounts than would otherwise be required, or changing the amount and composition of its liabilities in order to reduce the contribution it could make to systemic risk in the event of a shock to short-term funding channels.
This is also the first time for the PBC to sign a standing currency swap agreement. The above two policies have already been posted on the websites of the PBC, HKMA, and Hong Kong Securities and Futures Commission (SFC).