Featured Product

    HKMA Revises Regulatory Templates and Instructions for Banks

    June 04, 2021

    HKMA revised the template and completion instructions for the leverage ratio return (Form MA(BS)27); completion instructions for the Return of Stable Funding Position of an authorized institution (Form MA(BS)26)1) and the Return on large exposures (Form MA(BS)28), and the templates for relevant Pillar 3 disclosures. Reporting institutions should submit the three returns based on the revised completion instructions from June 30, 2021. HKMA specified that, to align with the upcoming revision to the submission deadline of the Return of Capital Adequacy Ratio (Form MA(BS)3) and some other returns, the submission deadline of the Form MA(BS)27 will be shortened from six weeks to one month commencing from the reporting position of March 31, 2022. Additionally, the revised disclosure templates will apply to disclosures for any reporting period ending on or after June 30, 2021.

    The leverage ratio Form MA(BS)27 collects information on the leverage position of authorized institutions incorporated in Hong Kong; this return should be submitted quarterly. This return and its completion instructions should be read in conjunction with the Banking (Capital) Rules and the relevant supervisory policy or guidance on the capital adequacy (CAR) framework and the leverage ratio framework. For the Return of Stable Funding Position, completion instructions are for category 1 institutions and category 2A institutions to calculate and report the Net Stable Funding Ratio (NSFR) and Core Funding Ratio (CFR), respectively, by using Return MA(BS)26, which is a quarterly return. The large exposures form MA(BS)28) is for the reporting of data under the the Banking (Exposure Limits) Rules (Cap. 155S), which was implemented on July 01, 2019; this return collects information on large exposures of an authorized institution to a single counterparty/group of linked counterparties, non-bank connected parties, and group affiliates.

    Finally, the disclosure requirements applicable to the authorized institutions are provided mainly in the Banking (Disclosure) Rules issued of HKMA under section 60A of the Banking Ordinance. All  authorized institutions, except for those exempted such as smaller banks, are required to comply with the disclosure requirements. Authorized institutions are required to use the standard HKMA-specified templates under sections 6(1)(ab) and 88(1)(b) of the Banking (Disclosure) Rules to disclose information associated with the Basel regulatory standards.

     

    Keywords: Asia Pacific, Hong Kong, Banking, Reporting, Counterparty Credit Risk, Large Exposures, Pillar 3, Net Stable Funding Ratio, Leverage Ratio, Disclosures, Basel, Regulatory Capital, NSFR, HKMA

    Featured Experts
    Related Articles
    News

    BCBS Consults on Guidelines for Counterparty Credit Risk Management

    The Basel Committee on Banking Supervision (BCBS) is seeking comments, until August 28, 2024, on guidelines for counterparty credit risk management of banks.

    May 21, 2024 WebPage Regulatory News
    News

    ISSB Releases Digital Sustainability Disclosures Taxonomy

    The themes of the harmonization and interoperability of sustainability disclosure standards among various jurisdictions remain at the top-of-mind for international standard-setting bodies.

    May 21, 2024 WebPage Regulatory News
    News

    BCBS Report Studies Implications of Digitalization of Finance

    The Basel Committee on Banking Supervision (BCBS) published a report that examines the implications of the digitalization of finance for banks and supervisors.

    May 21, 2024 WebPage Regulatory News
    News

    HKMA Publishes Hong Kong Taxonomy for Sustainable Finance

    The Hong Kong Monetary Authority (HKMA) published the Hong Kong Taxonomy for Sustainable Finance.

    May 21, 2024 WebPage Regulatory News
    News

    EU Taking Steps to Set Out and Enforce AI Regulations

    Many believe that the transformative power of generative artificial intelligence (GenAI) has potential to reshape the financial sector in the time to come.

    May 21, 2024 WebPage Regulatory News
    News

    BIS Paper Outlines Vision for Future Financial System

    In a recent paper, the General Manager of Bank for International Settlements (BIS) and the Indian entrepreneur (Infosys co-founder) Nandan Nilekani have laid out a vision for the Finternet, which is proposed to be a network of multiple financial ecosystems, much like the internet.

    April 29, 2024 WebPage Regulatory News
    News

    NGFS Outlines Options for Supervisory Review of Transition Plans

    The Network for Greening the Financial System (NGFS) recently published three reports on the use of transition plans to boost sustainable finance and manage climate-related financial risks.

    April 29, 2024 WebPage Regulatory News
    News

    BCBS Issues Discussion Paper on Climate Scenario Analysis

    The Basel Committee on Banking Supervision (BCBS) issued a discussion paper on the use of climate scenario analysis to strengthen the management and supervision of climate-related financial risks.

    April 29, 2024 WebPage Regulatory News
    News

    OSFI Issues Phase2 Consultation on Climate Scenario Exercise for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) recently announced a consultation on the second phase of the Standardized Climate Scenario Exercise (SCSE) for banks and other financial institutions it regulates in Canada.

    April 25, 2024 WebPage Regulatory News
    News

    CFIT to Chair Open Finance Taskforce Announced by UK Government

    The UK government announced the formation of an industry-led Open Finance Taskforce, chaired by the Center for Finance, Innovation, and Technology (CFIT).

    April 25, 2024 WebPage Regulatory News
    RESULTS 1 - 10 OF 8967