Regulatory Alerts2021-05-12
Added · Updated
Completion Instructions for Return of Capital Adequacy Ratio Part IIIa Basic Approach
Authorized institutions incorporated in Hong Kong must complete Form MA(BS)3(IIIa) to report risk-weighted amounts for credit risk using the basic approach under Part 5 of the Banking (Capital) Rules. The form requires reporting of on-balance sheet and off-balance sheet exposures in the banking book, default risk exposures to counterparties under securities financing transactions and derivatives in the trading book, and credit exposures to persons holding unsegregated collateral, while excluding specific items such as securitization exposures and exposures to central counterparties. Reporting entities must classify exposures into mutually exclusive standard classes including sovereign, public sector entity, multilateral development bank, bank, cash items, residential mortgage loans, and other exposures, adhering to specific definitions for recognized credit risk mitigation and tier 1 countries.
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