Regulatory Alerts2025-11-27
Added · Updated
Overview of Capital Adequacy Regime for Locally Incorporated Authorized Institutions
The Hong Kong Monetary Authority issues this statutory guideline to define the capital adequacy framework for locally incorporated authorized institutions. It mandates compliance with minimum common equity tier 1, tier 1, and total capital ratios alongside a leverage ratio, calculated on both solo and consolidated bases. The document outlines supervisory review processes, risk-weighting methodologies, and enforcement mechanisms for institutions failing to meet these prudential standards.