HKMA revised completion instructions for the Return of Loans and Advances and Provisions (MA(BS)2A) and the Return of Mainland Activities (MA(BS)20), consequential to the implementation of Part 7 of the Banking (Exposure Limits) Rules (BELR). Taking into account the six-month grace period allowed for compliance with Part 7 of the BELR, authorized institutions should start applying the revised completion instructions to report these two returns no later than the position of March 2020. An authorized institution that is capable of starting earlier may choose to do so.
The sole changes to these two returns concern aligning the meaning of “group of linked counterparties” with the BELR by referring to the same term under the new Large Exposures Return (MA(BS)28). HKMA believes that such minor changes should not cause reporting difficulties. The two returns cover the following information:
- Form MA(BS)2A is a quarterly return that analyzes, by economic sector, an authorized institution's loans and advances for use in Hong Kong. It also analyzes the performance of an institution's selected assets (mainly loans and advances) and off-balance sheet exposures according to the classification methods defined in these instructions. Information on provisions set aside for each category of classified assets is also included. Specific provisions and general provisions mentioned in this completion instruction should follow the definitions of specific provisions and collective provisions defined in section 2(1) of the Banking (Capital) Rules respectively.
- Form MA(BS)20 is a quarterly return that collects information on the Mainland-related business activities of authorized institutions and their Mainland bank subsidiaries. The scope of reporting covers activities booked in the Hong Kong office(s), Mainland branch(es), and subsidiary bank(s) in Mainland China. Specific provisions and general provisions mentioned in the completion instructions should follow the definitions of specific provisions and collective provisions as defined in section 2(1) of the Banking (Capital) Rules, respectively.
Keywords: Asia Pacific, Hong Kong, Banking, Large Exposures, MA (BS) 2A, MA (BS) 20, Instructions, Reporting, BELR, Banking Capital Rules, HKMA
Previous ArticleNBB Publishes Guidance for Banks and Insurers Offering Home Loans
PRA published a set of questions and answers (Q&A) covering common queries regarding residential and commercial property valuations, for the purpose of the Capital Requirements Regulation (CRR), during the period of disruption caused by COVID-19 pandemic.
IOSCO proposed updates to its principles for regulated entities that outsource tasks to service providers.
MAS announced that the first phase of the Veritas initiative will commence with the development of fairness metrics in credit risk scoring and customer marketing.
BoE published the Statistical Notice 2020/4 to update the buy-to-let (BTL) Phase 2 and Phase 3 definitions for the Interest Rate Type data item.
FSI published a brief note that examines challenges facing the banking sector as a result of the payment deferral programs put in place to support borrowers affected by the COVID-19 pandemic.
PRA published the policy statement PS14/20, which contains the supervisory statement SS1/20 and the feedback to responses to the consultation paper CP22/19 on expectations for investment by firms in accordance with the Prudent Person Principle, or PPP, as set out in the Investments Part of the PRA Rulebook.
EBA published an opinion following the notification by the French macro-prudential authority, the Haut Conseil de Stabilité Financière (HCSF), of its intention to extend a measure introduced in 2018 on the use of Article 458(9) of the Capital Requirements Regulation (CRR).
As part of a Research Bulletin on the recent policy-relevant work, ECB published an article that examines the lessons learned from past crises for nonperforming loan resolution in the post COVID-19 period.
RBNZ published the financial stability report for May 2020. This review of the financial system in the country highlights that the economic disruption associated with COVID-19 will present challenges to the financial system.
ECB updated the guidance notes for reporting related to the statistics on holdings of securities by reporting banking groups (SHSG).