Featured Product

    HKMA Finalizes Form and Instructions for Reporting of Large Exposures

    September 06, 2019

    HKMA issued a circular informing all authorized institutions that the new return for large exposures (Form MA(BS)28) and the accompanying completion instructions have been finalized. Annex 1 of the circular contains the finalized form MA(BS)28, along with the accompanying completion instructions. Additionally, HKMA published “Introduction” part of the Completion Instructions of Return of Capital Adequacy Ratio (MA(BS)3). The revised "Introduction" is enclosed in Annex 2 of the circular for reference.

    An authorized institution that is ready to comply with the Banking (Exposure Limits) Rules (BELR) should start to use form MA(BS)28 for reporting purposes, beginning from the period of end-September 2019. The authorized institution that is not yet ready may still use the old return form MA(BS)1D for reporting during the grace period allowed under the BELR; however, the institution but must switch to using MA(BS)28 starting from the reporting position of end-March 2020. 

    The circular also highlights that the “Introduction” part of the Completion Instructions of MA(BS)3 has been revised incidental to the introduction of a risk-weighted amount for sovereign concentration risk in the capital adequacy ratio calculation. This part only provides for an overview of the return and reporting requirements and, therefore, the changes should not entail any real reporting impact. HKMA has also published Return of Certificate of Compliance (MA(BS)1F), MA(BS)3, and their accompanying completion instructions.

     

    Keywords: Asia Pacific, Hong Kong, Banking, Large Exposures, Reporting, CAR Return, BELR, Capital Adequacy, Basel III, HKMA

    Featured Experts
    Related Articles
    News

    BOE Article Explains Process for Bank Authorization in UK

    BoE published an article, in the Quarterly Bulletin for the third quarter of 2019, on how banks are authorized in the UK.

    September 20, 2019 WebPage Regulatory News
    News

    HKMA on Commencement of Regulatory Regime Under Insurance Ordinance

    HKMA announced the commencement of new licensing and regulatory regime for insurance intermediaries under the Insurance Ordinance from September 23, 2019.

    September 20, 2019 WebPage Regulatory News
    News

    APRA Revises Standard on Margin Rules for Uncleared Derivatives

    APRA revised CPS 226, which is the prudential standard on margin and risk mitigation requirements for non-centrally cleared derivatives.

    September 19, 2019 WebPage Regulatory News
    News

    SEC Adopts Rules and Amendments Under Regulatory Regime for Swaps

    SEC announced that it took a significant step toward establishing the regulatory regime for security-based swap dealers (SBSDs) by adopting a package of rules and rule amendments under Title VII of the Dodd-Frank Act.

    September 19, 2019 WebPage Regulatory News
    News

    FCA Welcomes ISDA Protocol on Narrowly Tailored Credit Events

    FCA published an update to its initial joint statement with the U.S. SEC and CFTC on opportunistic strategies in the credit derivatives markets.

    September 19, 2019 WebPage Regulatory News
    News

    PRA Issues Consultation on Prudent Person Principle Under Solvency II

    PRA, via the consultation paper CP22/19, has set out its proposed expectations for investment by firms, in accordance with the Prudent Person Principle (PPP).

    September 18, 2019 WebPage Regulatory News
    News

    PRA Proposal on Probability of Default and LGD Estimation

    PRA proposed, via the consultation paper CP21/19, an approach to implementing EBA’s recent regulatory products relating to Probability of Default (PD) estimation, Loss Given Default (LGD) estimation, and the treatment of defaulted exposures in the internal ratings-based (IRB) approach to credit risk.

    September 18, 2019 WebPage Regulatory News
    News

    BIS Formalizes Agreement to Set Up Innovation Hub in Hong Kong SAR

    BIS and HKMA signed the Operational Agreement on the BIS Innovation Hub Center in Hong Kong Special Administrative Region (SAR).

    September 18, 2019 WebPage Regulatory News
    News

    APRA Observations from Thematic Review on Recovery Plans of Insurers

    APRA issued a letter to general insurers and life insurers, outlining observations from a recent thematic review on recovery planning by insurers.

    September 18, 2019 WebPage Regulatory News
    News

    BNM Publishes Financial Stability Review for the First Half of 2019

    BNM published Financial Stability Review for the first half of 2019.

    September 18, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 3853