HKMA: Revised SPM Module CA-B-3 and Return MA(BS)25 for Countercyclical Capital Buffer

Banking Policy Department
Our Ref: B1/15C
B9/128C
S4/3C
20 December 2024
The Chief Executive
All Locally Incorporated Authorized Institutions Dear Sir/Madam, CCyB: revised SPM module CA-B-3 and return MA(BS)25 I am writing to inform you that, following consultation with the two industry Associations, the Monetary Authority is issuing today its (i) revised Supervisory Policy Manual (“SPM”) module CA-B-3 “Countercyclical Capital Buffer (CCyB) – Geographic Allocation of Private Sector Credit Exposures” as statutory guidance, by notice in the Gazette, under section 7(3) of the Banking Ordinance; and (ii) a revised return (Form MA(BS)25) for the “Quarterly Reporting on the Countercyclical Capital Buffer (CCyB)”. The revisions to this module and the return reflect mainly the consequential changes arising from the Banking (Capital) (Amendment) Rules 2023. Key updates include the adoption of new approaches under the revised market risk framework, as well as clarifications on certain components, namely the output floor and the credit valuation adjustment risk, regarding their relevance in the calculations. The revised SPM module is available online on the HKMA’s public website1 and the Supervisory Communication Website 2 . The STET software for the revised return is available for downloading from the Supervisory Communication Website. Reporting institutions should submit the revised return based on the associated completion instructions to the HKMA, via the STET system, starting from the reporting position as of 31 March 2025. 1 https://www.hkma.gov.hk/eng/regulatory-resources/regulatory-guides/supervisory-policy-manual 2 https://www.stet.iclnet.hk

2
Should you have any questions regarding technical aspects of the return template or the STET submission, please feel free to contact our STET helpdesk (2878- 1800). For other enquiries on this matter, please contact Mr Felix Kwan (ftkkwan@hkma.gov.hk) or Mr Leo Lai (lchlai@hkma.gov.hk). Yours faithfully, Cho-hoi Hui Acting Executive Director (Banking Policy) Encl. cc: The Chairperson, The Hong Kong Association of Banks The Chairperson, The DTC Association FSTB (Attn: Ms Tanna Chong)