Regulatory Alerts2020-01-21
Added · Updated
BELR Rule 29(2) – Life Insurance Policy as Acceptable Security
The Banking (Capital) Rules establish criteria for accepting life insurance policies as security under Rule 29(2). Authorized institutions must ensure the policy is issued by a Hong Kong-authorized insurer with a minimum credit rating of BBB- from Standard & Poor’s or Fitch. The security value is determined by the lower of the surrender value or 75% of the cash value, or a more prudent internal valuation.