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

    EBA Finalizes Templates for One-Off Climate Risk Scenario Analysis

    The European Banking Authority (EBA) has published the final templates, and the associated guidance, for collecting climate-related data for the one-off Fit-for-55 climate risk scenario analysis.

    November 28, 2023 WebPage Regulatory News
    News

    EBA Mulls Inclusion of Environmental & Social Risks to Pillar 1 Rules

    The European Banking Authority (EBA) recently published a report that recommends enhancements to the Pillar 1 framework, under the prudential rules, to capture environmental and social risks.

    October 31, 2023 WebPage Regulatory News
    News

    BCBS Consults on Disclosure of Crypto-Asset Exposures of Banks

    As a follow on from its prudential standard on the treatment of crypto-asset exposures, the Basel Committee on Banking Supervision (BCBS) proposed disclosure requirements for crypto-asset exposures of banks.

    October 19, 2023 WebPage Regulatory News
    News

    BCBS and EBA Publish Results of Basel III Monitoring Exercise

    The Basel Committee on Banking Supervision (BCBS) and the European Banking Authority (EBA) have published results of the Basel III monitoring exercise.

    October 18, 2023 WebPage Regulatory News
    News

    PRA Updates Timeline for Final Basel III Rules, Issues Other Updates

    The Prudential Regulation Authority (PRA) recently issued a few regulatory updates for banks, with the updated Basel implementation timelines being the key among them.

    October 18, 2023 WebPage Regulatory News
    News

    US Treasury Sets Out Principles for Net-Zero Financing

    The U.S. Department of the Treasury has recently set out the principles for net-zero financing and investment.

    October 17, 2023 WebPage Regulatory News
    News

    EC Launches Survey on G7 Principles on Generative AI

    The European Commission (EC) launched a stakeholder survey on the draft International Guiding Principles for organizations developing advanced artificial intelligence (AI) systems.

    October 14, 2023 WebPage Regulatory News
    News

    ISSB Sustainability Standards Expected to Become Global Baseline

    The finalization of the two sustainability disclosure standards—IFRS S1 and IFRS S2—is expected to be a significant step forward in the harmonization of sustainability disclosures worldwide.

    September 18, 2023 WebPage Regulatory News
    News

    IOSCO, BIS, and FSB to Intensify Focus on Decentralized Finance

    Decentralized finance (DeFi) is expected to increase in prominence, finding traction in use cases such as lending, trading, and investing, without the intermediation of traditional financial institutions.

    September 18, 2023 WebPage Regulatory News
    News

    BCBS Assesses NSFR and Large Exposures Rules in US

    The Basel Committee on Banking Supervision (BCBS) published reports that assessed the overall implementation of the net stable funding ratio (NSFR) and the large exposures rules in the U.S.

    September 14, 2023 WebPage Regulatory News
    RESULTS 1 - 10 OF 8938