Return of Quarterly Reporting on the Countercyclical Capital Buffer (Form MA(BS)25) and Revised Return on Capital Adequacy Ratio (Form MA(BS)3)

Our Ref.: B1/15C B9/75C B9/128C S4/3C 4 December 2015 The Chief Executive All locally incorporated authorized institutions Dear Sir/Madam, Return of Quarterly Reporting on the Countercyclical Capital Buffer (Form MA(BS)25) and Revised Return on Capital Adequacy Ratio (Form MA(BS)3) I am writing to inform you that, following earlier industry consultation, we have finalised the Return of Quarterly Reporting on the Countercyclical Capital Buffer (CCyB) (Form MA(BS)25) (“CCyB Return”), the revised Return on Capital Adequacy Ratio (Form MA(BS)3) (“revised CAR Return”), and their accompanying Completion Instructions (“CIs”). The CCyB Return and the revised CAR Return (with their accompanying CIs) are enclosed. For ease of reference, changes incorporated in the revised CAR Return and its CIs are highlighted. Authorized institutions (“AIs”) should make submissions using the CCyB Return and the revised CAR Return starting from the position of end-March 2016. We will inform AIs under separate cover when the electronic files for the Returns are available for downloading from the HKMA’s supervisory communication website (http://www.stet.iclnet.hk).

2 Should you have any questions regarding the above, please feel free to contact:  Ms Carita Wan (carita_pm_wan@hkma.gov.hk) in relation to the CCyB Return;  Miss Theresa Kwan (tyykwan@hkma.gov.hk) or Mr Raymond Tsui (ryktsui@hkma.gov.hk) in relation to Parts I and II of the revised CAR Return; and  Ms Celine Chan (cslchan@hkma.gov.hk) or Mr Argus Leung (acmleung@hkma.gov.hk) in relation to Parts IIIc and IV of the revised CAR Return respectively. Yours faithfully, Karen Kemp Executive Director (Banking Policy) Encl cc: The Chairperson, Hong Kong Association of Banks The Chairman, The DTC Association FSTB (Attn: Mr Jackie Liu)