Regulatory Alerts2019-07-05
Added · Updated
Completion Instructions for Return of Capital Adequacy Ratio Form MA(BS)3(I)
Reporting institutions must complete Form MA(BS)3(I) in three divisions: Division A for summary capital adequacy ratios, Division B for the capital floor calculation under the internal ratings-based approach, and Division C for capital buffer requirements. Institutions using the IRB approach are required to calculate a capital floor for the first three years of adoption, with specific adjustment factors and calculation methods depending on whether implementation occurred within or after the 2007-2009 transitional period. The Monetary Authority may require institutions to maintain or reinstate the capital floor beyond the standard three-year period based on supervisory standards or specific prudential concerns. Division C mandates the reporting of the net CET1 capital ratio and applicable buffer levels, including capital conservation, countercyclical, and higher loss absorbency ratios.
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