On December 19, 2018, the Hong Kong Monetary Authority (HKMA) issued a circular titled “Supervision for Bank Culture.” The new guidance introduced supervisory measures to Authorized Institutions (AIs), including self-assessments and site visits. While a strong bank culture is not a paint-by-numbers exercise, several vital components must be carefully aligned – namely, ethical behavior, tone at the top, mood in the middle and attitude at the base.

This article identifies several practices that reflect a sound bank culture and offers steps AIs should use for establishing and maintaining a strong governance framework.