Return of Liquidity Monitoring Tools (Form MA(BS)23)

Our Ref.: B1/15C S4/16C 25 September 2015 The Chief Executive All Authorized Institutions Dear Sir / Madam, Return of Liquidity Monitoring Tools (Form MA(BS)23) I write to inform you that, after consultation with the two industry associations, we have finalised the Return on Liquidity Monitoring Tools (Form MA(BS)23) and the associated Completion Instructions (CIs). The Return and CIs are enclosed. Taking into account the industry’s comments, the Return will be implemented in two phases:  Phase 1 – Official reporting in respect of Parts 1 to 3 of the Return will start from the position of 31 December 2015, covering the Hong Kong office position (for all authorized institutions (AIs)) and the unconsolidated positions (for locally incorporated AIs with overseas branches).  Phase 2 – Official reporting in respect of Part 4 (by all AIs) and Part 5 (by category 1 institutions only) will start from the position of 30 June 2016, covering, where applicable, the Hong Kong office position, the unconsolidated position and the consolidated position (in respect of Part 5 only). To help AIs prepare for official reporting under the Return, two rounds of test￾reporting are to be conducted:  The first round of test reporting will cover Parts 1 to 3 of the Return based on the position of 30 June 2015, and the results should be submitted to the HKMA by 14 November 2015.  The second round of test-reporting will cover Parts 4 and 5 of the Return based

2 on the position of 31 December 2015, and the results should be submitted to the HKMA by 31 March 2016. We will inform you separately when the electronic file in respect of this Return is available for downloading for reporting purposes. If you have any questions about this Return, please feel free to contact Eric Ng (2878-8603), Leo Lai (2878-1580) or Thomas Wong (2878-1219). Yours faithfully, Karen Kemp Executive Director (Banking Policy) Encl. c.c. The Chairperson, The Hong Kong Association of Banks The Chairman, The DTC Association FSTB (Attn. Mr Jackie Liu)