Banking (Exposure Limits) Rules Expedient Reporting Arrangements for September 2018 Return

Annex 3 Return of Certificate of Compliance (MA(BS)1F(a)) Expedient reporting arrangements Applicable to an authorized institution (“AI”) which starts to comply with the revised equity exposure limit set out in the Banking (Exposure Limits) Rules (the Rules) from 13 July 2018 The AI should follow the instructions below when it reports the September 2018 Return of Certificate of Compliance: (i) Part II item 5 (to be renumbered to item 7(a) in the revised return) on compliance with Banking Ordinance (“BO”) section 87 during the reporting period (indicate yes or no)  Notwithstanding that this item will be revised to make reference to Part 2 of the Rules, when reporting this item for the September 2018 Return, the AI should indicate YES only if it has complied with BO section 87 for the period 1 July to 12 July 2018 and has complied with Part 2 of the Rules for the period 13 July to 30 September 2018. (ii) Part III item 5 - Maximum aggregate value of shareholdings within the meaning of BO section 87 This item will be revised to make reference to maximum aggregate equity exposures under rule 12 of the Rules. For reporting the September 2018 Return, an AI should-  report its maximum aggregate equity exposures under rule 12 during 13 July to 30 September 2018 in the return. Supplementary reporting requirement When the AI submits the September 2018 Return of Certificate of Compliance, it should also separately submit a letter enclosing the information below to the AI’s usual contact at the HKMA: A hard copy of the current version (i.e. before revision) of the Return of Certificate of Compliance with the completion of the items specified below: (i) Part III item 5 - Maximum aggregate value of shareholdings, within

the meaning of BO s.87(1), other than those exempted from BO s.87(2), amounted to  Report the maximum aggregate shareholdings during 1 to 12 July 2018 instead. (ii) Part V item 2 – At the end of the reporting period, the value of shareholdings or debt securities acquired under an underwriting contract or in satisfaction of debts, etc, and the value of interests in land acquired under mortgage to secure debts due to the institution as approved by the Monetary Authority under sections 81(6)(i), 81(7), 87(1), 87(2)(a) and 88(5) respectively, amounted to  In relation to section 87, report the amount of the shareholdings as at 12 July 2018 instead. The above information should be signed off by an officer who has proper delegated authority for signing off banking returns.