Revised Banking Returns for Capital Adequacy, Leverage Ratio, Liquidity Position, and Stable Funding Position

Banking Policy Department Our Ref: B1/15C, B9/75C, B9/143C S4/3C, S4/16C 30 August 2024 The Chief Executive All Authorized Institutions Dear Sir/Madam, Revised Banking Returns – Capital Adequacy Ratio (Form MA(BS)3) (“CAR Return”), Leverage Ratio (Form MA(BS)27) (“LR Return”), Liquidity Position (Form MA(BS)1E) (“Liquidity Position Return”) and Stable Funding Position (Form MA(BS)26) (“Stable Funding Position Return”) I am writing to inform you that, following previous industry consultations, we have finalised the revisions to the CAR Return, LR Return and their respective Completion Instructions (“CIs”), as enclosed. Changes since the last version in use are highlighted for ease of reference. The revisions are mainly for implementing the Banking (Capital) (Amendment) Rules 2023 (“BCAR”) that are intended to come into effect on 1 January 2025. In addition, a few minor consequential amendments arising from the implementation of the BCAR have been made to the Stable Funding Position Return and its CIs, and the CIs for the Liquidity Position Return, as highlighted in the relevant enclosures. The STET software for the CAR Return, LR Return and Stable Funding Position Return will be available for downloading from the HKMA’s supervisory communication website (http://www.stet.iclnet.hk) in early January 2025. Reporting institutions should submit the CAR Return, LR Return, and Stable Funding Position Return based on the revised CIs to the HKMA, via the STET system, starting from the reporting position as of 31 March 2025, and the Liquidity Position Return starting from the reporting position as of 31 January 2025.

2 Should you have any questions regarding the technical aspect of the return template or STET submission, please feel free to contact our STET helpdesk at 2878-1800. Yours faithfully, Martin Sprenger Acting Executive Director (Banking Policy) Encl cc: The Chairperson, The Hong Kong Association of Banks The Chairperson, The DTC Association FSTB (Attn: Mr Justin To)