HKMA issued a circular that sets out the revised submission deadlines for several existing returns, including the returns on capital adequacy ratio, liquidity monitoring tools, stable funding position, large exposures. HKMA had initially proposed that the new submission timelines for the returns listed in Annex 5 of the circular should become effective starting from the reporting position of June 2021. Based on the requests for provision of sufficient time for authorized institutions to adapt to the revised deadlines, HKMA has decided that the new submission deadlines will now be starting from the reporting position of March 2022. In this circular, HKMA also announced that it has developed a new Return of Consolidated Accounts (Form MA(BS)1H).
HKMA has revised submission deadlines of the following existing returns:
- Return of Capital Adequacy Ratio—In case of combined return, the existing submission deadline is one month for local authorized institutions without overseas branches and six weeks after the end of each quarter for all other cases. The submission deadline will remain unchanged for local authorized institutions without overseas branches whereas for all other cases the new submission deadline will be one month after the end of each quarter. In case of consolidated return, new submission deadline will also change to one month after the end of each quarter as opposed to six weeks after the end of each quarter.
- Returns of Liquidity Monitoring Tools, Stable Funding Position, and Large Exposures—The submission deadline for these returns will change from six weeks to one month after the end of each quarter.
As authorized institutions are expanding their overseas presence, it is necessary for HKMA to introduce the Return of Consolidated Accounts to monitor the developments of the banking sector in a more comprehensive manner and strengthen the consolidated supervision of locally incorporated authorized institutions. HKMA will require the locally incorporated licensed banks with one or more subsidiaries to provide information in the form of the enclosed Return of Consolidated Accounts in accordance with Section 63(2) of the Banking Ordinance, starting with the reporting position of December 2021. The finalized Return and the Completion Instructions for this Return are enclosed in Annexes 1 to 4 of the circular. In response to the request by the industry, the submission deadline of the Return of Consolidated Accounts will be six weeks after the end of each quarter during the first year of submission (that is, the reporting positions of December 2021, March 2022, June 2022, and September 2022) to provide reporting institutions with sufficient time to adopt the reporting of the new Return of Consolidated Accounts. Thereafter, the deadline will be one month after each quarter-end.
Keywords: Asia Pacific, Hong Kong, Banking, Reporting, Submission Timeline, Capital Adequacy Ratio, Liquidity Monitoring Tools, Large Exposures, Basel, Banking Ordinance, HKMA
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