Featured Product

    HKMA Revises Return on Capital Adequacy Ratio of Banks

    July 05, 2019

    HKMA has finalized changes to the Return of Capital Adequacy Ratio (MA(BS)3) (also known as the CAR Return) and the Return of Certificate of Compliance (MA(BS)1F) (known as Certificate), along with the accompanying completion instructions. For ease of reference, HKMA has highlighted major changes to the returns and instructions since the last version in use. The authorized institutions are required to submit the revised returns starting with the reporting position of end-September 2019.

    The revisions to the CAR Return primarily seek to collect a new risk-weighted amount on sovereign concentration risk under Part I for the calculation of the capital adequacy ratio and introduce a new Part VI to collect the detailed breakdown of that amount. The revisions to the Certificate primarily seek to (i) replace, as appropriate, references to the Banking Ordinance and the Banking (Exposure Limits) Rules (Chapter 155R), which have been made obsolete by the implementation of the new Banking (Exposure Limits) Rules (Chapter 155S) (BELR). The revisions to the Certificate also add a new reporting field on “adjusted Tier 1 capital amount” to support the implementation of the new 50% land exposure limit under Part 6 of the BELR. 

    In respect of the Certificate, a locally incorporated authorized institution that intends to comply with an exposure limit under the Banking Ordinance in lieu of an applicable exposure limit under the BELR during a grace period, as allowed under the BELR, should also follow the reporting instructions enclosed in Annex 2. These authorized institutions will also be required to submit additional information as set out under Supplementary Reporting Requirement in Annex 2 pursuant to section 63(2) of the Banking Ordinance.

     

    Keywords: Asia Pacific, Hong Kong, Banking, Basel III, Reporting, CAR Return, BELR, Banking Ordinance, Banking (Exposure Limits) Rule, Tier 1 Capital, HKMA

    Featured Experts
    Related Articles
    News

    OSFI Outlines Prudential Policy Priorities for Coming Months

    OSFI has set out the near-term priorities for federally regulated financial institutions and federally regulated private pension plans for the coming months until March 31, 2022.

    May 06, 2021 WebPage Regulatory News
    News

    BIS Announces TechSprint on Innovative Green Finance Solutions

    Under the Italian G20 Presidency, BIS Innovation Hub and the Italian central bank BDI launched the second edition of the G20 TechSprint on the lookout for innovative solutions to resolve operational problems in green and sustainable finance.

    May 06, 2021 WebPage Regulatory News
    News

    EBA Proposed Regulatory Standards for Central Database on AML/CFT

    EBA proposed the regulatory technical standards on a central database on anti-money laundering and countering the financing of terrorism (AML/CFT) in EU.

    May 06, 2021 WebPage Regulatory News
    News

    ECB Responds to EC Consultation on Crisis Management Framework

    ECB published its response to the targeted EC consultation on the review of the bank crisis management and deposit insurance framework in EU.

    May 06, 2021 WebPage Regulatory News
    News

    ACPR Publishes Version 1.0.0 of RUBA Taxonomy

    ACPR published Version 1.0.0 of the RUBA taxonomy, which will come into force from the decree of January 31, 2022.

    May 06, 2021 WebPage Regulatory News
    News

    BCBS, CPMI, and IOSCO to Survey Market Participants on Margin Calls

    BCBS, CPMI, and IOSCO (the Committees) are inviting entities that participate in market infrastructures and securities markets through an intermediary as well as non-bank intermediaries to complete voluntary surveys on the use of margin calls.

    May 05, 2021 WebPage Regulatory News
    News

    ECB Amends Decision on TLTRO III

    ECB published Decision 2021/752 to amend Decision 2019/1311 on the third series of targeted longer-term refinancing operations or TLTRO III.

    May 05, 2021 WebPage Regulatory News
    News

    Central Bank of Ireland Issues Draft Template for AnaCredit Reporting

    The Central Bank of Ireland published Version 2.7 of the draft credit data template and rules for monthly AnaCredit reporting by banks.

    May 05, 2021 WebPage Regulatory News
    News

    OSFI Consults on Revisions to BCAR and Leverage Requirements Returns

    OSFI proposed revisions to the Basel Capital Adequacy Reporting (BCAR) and leverage requirements returns for the 2023 reporting, with the comment period ending on July 09, 2021.

    May 04, 2021 WebPage Regulatory News
    News

    EBA Seeks Views on Revisions to Nonperforming Loan Data Templates

    EBA published a discussion paper on review of the standardized nonperforming loans (NPL) transaction data templates, along with the proposed revised NPL data templates.

    May 04, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6936