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

    BCBS Amends Guidelines on Sound Management of AML/CFT Risks

    BCBS amended the guidelines on sound management of risks related to money laundering and financing of terrorism (ML/FT).

    July 02, 2020 WebPage Regulatory News
    News

    US Agencies Finalize Amendments to Swap Margin Rule

    US Agencies (Farm Credit Administration, FDIC, FED, FHFA, and OCC) finalized changes to the swap margin rule to facilitate implementation of prudent risk management strategies at banks and other entities with significant swap activities.

    July 01, 2020 WebPage Regulatory News
    News

    PRA Letter Sets Expectations on Approach to Managing Climate Risks

    PRA published a letter that builds on the expectations set out in the supervisory statement (SS3/19) on enhancing banks' and insurers' approaches to managing the financial risks from climate change.

    July 01, 2020 WebPage Regulatory News
    News

    EBA Guidelines on Treatment of Structural Foreign Exchange Under CRR

    EBA finalized the guidelines on treatment of structural foreign-exchange (FX) positions under Article 352(2) of the Capital Requirements Regulation (CRR).

    July 01, 2020 WebPage Regulatory News
    News

    FSB Issues Statement on Impact of COVID-19 Crisis on Benchmark Reform

    FSB published a statement on the impact of COVID-19 pandemic on global benchmark transition.

    July 01, 2020 WebPage Regulatory News
    News

    IAIS Publishes List of Internationally Active Insurance Groups

    IAIS published the list of Internationally Active Insurance Groups (IAIGs) publicly disclosed by group-wide supervisors.

    July 01, 2020 WebPage Regulatory News
    News

    FED Temporarily Revises FR Y-9C With Respect to PPPLF and CARES Act

    FED has temporarily revised the reporting form on consolidated financial statements for holding companies (FR Y-9C; OMB No. 7100-0128).

    July 01, 2020 WebPage Regulatory News
    News

    EC Launches Consultation on Review of Solvency II Directive

    EC launched a consultation on the review of the key elements of Solvency II Directive, with the comment period ending on October 21, 2020.

    July 01, 2020 WebPage Regulatory News
    News

    ECB Consults on Supervisory Approach to Consolidation in Banking

    ECB launched a consultation on the guide that sets out supervisory approach to consolidation projects in the banking sector.

    July 01, 2020 WebPage Regulatory News
    News

    IAIS on Package for 2020 Data Collection on ICS and Aggregation Method

    IAIS published technical specifications, questionnaires, and templates for 2020 Insurance Capital Standard (ICS) and Aggregation Method data collections.

    June 30, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5425