Regulatory Alerts2018-03-16
Added · Updated
Capital Treatments for Exposures Covered by HKMC Programmes After GI Business Transfer
The Hong Kong Monetary Authority issues this annex to define capital treatments for Authorized Institutions holding exposures covered by HKMC guarantee and insurance programs following the transfer of general insurance business. The document specifies distinct reporting and risk-weighting requirements under the Standardized, Basic, and Internal Ratings-Based approaches, primarily treating insured portions as deemed exposures to the HKMC. It mandates that references to the former HKMC be construed as HKMCI and maintains existing reporting arrangements to ensure data comparability and avoid undue reporting burdens during this transitional period.