Regulatory Alerts2019-10-31
Added · Updated
Publication of standard LAC disclosure templates
Resolution entities and material subsidiaries under the Financial Institutions (Resolution) (Loss-absorbing Capacity Requirements – Banking Sector) Rules must disclose loss-absorbing capacity metrics using specified fixed or flexible templates. Resolution entities and material subsidiaries are required to submit quarterly fixed-format disclosures for key metrics, including external or internal loss-absorbing capacity, risk-weighted amounts, and leverage ratios, covering the current period and four previous quarters. Material subsidiaries must also provide semi-annual flexible-format disclosures on the main features of regulatory capital and non-capital LAC debt instruments, updating these whenever instruments are issued, repaid, or materially changed. Non-HK resolution entities' material subsidiaries must report external loss-absorbing capacity metrics for the parent group, utilizing proxy values from local regulatory capital regimes if specific LAC data is unavailable.
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