HKMA Revises Submission Timelines for Several Existing Returns
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
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Karen Moss
Senior practitioner in asset and liability management (ALM) and liquidity risk who assists banking clients in advancing their treasury and balance sheet management objectives
Previous Article
UK and Brazil Agree to Cooperate on Green Finance and FintechRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.