Return of Information for Assessment of Systemically Important Authorized Institutions (Form MA(BS)24)

Banking Policy Department 銀行政策部
Our Ref: B1/15C
B4/1C
B9/127C
B4/9C
13 April 2015
The Chief Executive
All Authorized Institutions
Dear Sir / Madam,
Return of Information for Assessment of Systemically Important Authorized Institutions (Form MA(BS)24) I am writing to inform you that, following earlier industry consultation, we have finalised the Return of Information for Assessment of Systemically Important Authorized Institutions (Form MA(BS)24) and the accompanying Completion Instructions. The Return (with the accompanying Completion Instructions) is enclosed for reference. AIs are required to submit the Return on an annual basis starting from the reporting position of end-December 2014. Generally AIs will be expected to submit the completed Return within four months after the year-end. However, the first reporting deadline will (in recognition of the fact that the Return has only recently been finalised) be extended to end-June 2015. Authorized Institutions will be informed when the electronic file for the Return can be downloaded from the HKMA’s private website (http://www.stet.iclnet.hk). We currently expect this to be around mid-May 2015. Should you have any questions regarding the Return, please feel free to contact Mr Martin Sprenger (msprenger@hkma.gov.hk) or Ms Carita Wan (carita_pm_ wan@hkma.gov.hk). Yours sincerely,

Karen Kemp

Executive Director (Banking Policy)

Encl

cc: The Chairman, Hong Kong Association of Banks The Chairman, The DTC Association FSTB (Attn: Mr Jackie Liu)

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MA(BS)24 / P. 1 (04/2015)
Completion Instructions
Return of Information for Assessment of
Systemically Important Authorized Institutions Form MA(BS)24 Introduction

1. This return collects information on selected Authorized Institutions (AIs) for
   the purpose of identifying systemically important AIs in Hong Kong. Scope of application
2. All licensed banks must complete this return. Restricted licence banks and
   deposit-taking companies may be required to complete this return on a case-by-case basis. General instructions
3. The reporting position is end of December each year.
4. The return should be submitted no later than end of April of each year. If the
   submission deadline falls on a public holiday, it will be deferred to the next working day.
5. For locally incorporated AIs, data to be collected in this return should be
   based on the regulatory scope of consolidation for capital purposes (i.e. for the calculation of capital adequacy ratio under section 3C of the Banking (Capital) Rules). Please refer to section (i) below for specific instructions.
6. Locally incorporated AIs that do not have consolidated positions should
   report their combined positions (i.e. aggregate position of all Hong Kong offices and overseas branches), or the aggregate positions of their Hong Kong offices if they do not have overseas branches.
7. For foreign incorporated AIs, data to be reported in this return should be
   based on the positions of their Hong Kong offices. Reported items that are the same as those reported in other banking returns will be specified for cross-reference. Please refer to section (ii) below for specific instructions.

MA(BS)24 / P. 2 (04/2015)
Specific instructions
(i) For locally incorporated AIs
8. Item 1.1 – Total assets: Represents the total amount in the balance sheet.
[Note: this item is comparable with the balance sheet information as required under section 36(1)(a) of the BDR.]
9. Item 2.1 – Balances and placement with banks: Represents all amounts
placed with other AIs/banks in the form of cash and deposits; and loans and advances to banks. “Banks” refers to AIs in Hong Kong or institutions regarded by the appropriate authorities as banks in their place of incorporation. Amounts held by the reporting institution with respect to debt securities or certificates of deposit issued by other AIs/banks, the Exchange Fund and central banks / monetary authorities in other jurisdictions are to be excluded from this item.
10. Item 2.2 – Deposits and balances from banks: Represents all amounts owed
by the reporting institution to other AIs/banks which arise out of banking transactions. “Banks” refers to AIs in Hong Kong or institutions regarded by the appropriate authorities as banks in their place of incorporation. Amounts relating to debt securities or certificates of deposit issued by the reporting institution, and funds from the Exchange Fund and central banks / monetary authorities in other jurisdictions are to be deducted from this item.
11. Item 2.3 – Loans to financial concerns: Financial concerns mean investment
companies (including companies in the business of investment in commodity futures; foreign currencies; gold bullion; shares; funds and securities; unit trusts; retirement funds; and investment holding companies); insurance companies; futures brokers and finance companies and other persons engaged in the financial sector which are not AIs or banks. [Note: this is comparable to the sector information as required under section 47(1)(a)(i)(C) of the BDR.]
12. Item 3.1 – Deposits from customers: Report all deposit liabilities due to
parties other than other AIs/banks. “Deposit” is defined in Section 2 of the Banking Ordinance. [Note: this item is comparable to the balance sheet information as required under section 36(1)(b)(ii) of the BDR.]
13. Item 3.2 – Loans and advances to customers: Report all loans and advances

MA(BS)24 / P. 3 (04/2015)
(in gross amount) to customers other than the Exchange Fund, banks and other AIs. [Note: this item is comparable to the balance sheet information as required under section 36(1)(a)(v)(A) of the BDR.] (ii) For foreign incorporated AIs
14. Item 1.1 – Total assets: This is the same as the total amount of item 23 of
Banking Return MA(BS)1.
15. Item 2.1 – Balances and placement with banks: Represents all amounts
placed with other AIs/banks in the form of cash and deposits; and loans and advances to banks. Amounts placed with the head office or an overseas office of the head office, the Exchange Fund and central banks / monetary authorities in other jurisdictions are to be excluded from this item.
16. Item 2.2 – Deposits and balances from banks: Represents all amounts owed
by the reporting institution to other AIs/banks which arise out of banking transactions. Amounts relating to debt securities or certificates of deposit issued by the reporting institution, funds from the head office or an overseas office of the head office, the Exchange Fund and other central banks / monetary authorities in other jurisdictions are to be deducted from this item.
17. Item 2.3 – Loans to financial concerns: This is the same as the total amount of
Item H2e of Part 1 under Banking Return MA(BS)2A.
18. Item 3.1 – Deposits from customers: This is the same as the total amount of
item 6.4 of Banking Return MA(BS)1.
19. Item 3.2 – Loans and advances to customers: This is the same as the total
amount of item 15.7g of Banking Return MA(BS)1.
Hong Kong Monetary Authority
13 April 2015

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AA 和
(For Official Use Only)
SECRET under the Banking Ordinance
RETURN OF INFORMATION FOR ASSESSMENT OF
SYSTEMICALLY IMPORTANT AUTHORIZED INSTITUTIONS *LOCAL OFFICE(S) / COMBINED / CONSOLIDATED RETURN As at a (ddmm/yyyy)

• Delete where inapplicable
  Name of Authorized Institution Date of Submission The Banking Ordinance Information requested in this return is required under section 63(2) of the Banking Ordinance. The return should be submitted to the Monetary Authority not later than 4 calendar months after the last day of each calendar year, unless otherwise advised by the Monetary Authority. Note: This return is to be prepared in accordance with the completion instructions issued by the Monetary Authority. We certify that this return is, to the best of our knowledge and belief, correct. Chief Accountant Chief Executive Name and telephone number of responsible person who may be contacted by the Monetary Authority in case of any query. Name Telephone Number MA(BS)24(12/2014)

NATURE OF ITEM | TOTAL |
(HKS'000)

1. Size
   1.1 Total assets | |
2. Interconnectedness
   2.1 Balances and placement with banks
   2.2 Deposits and balances from banks
   2.3 Loans to financial concerns
3. Substitutability
   3.1 Deposits from customers | |
   3.2 Loans and advances to customers | |