Regulatory Alerts2018-03-02
Added · Updated
Revised Return of Capital Adequacy Ratio Form MA(BS)3 Annex 4 Part IIIa: Risk-weighted Amount for Credit Risk BSC Approach
The Hong Kong Monetary Authority issued this document to define the reporting requirements for the Risk-weighted Amount for Credit Risk under the Basel Standardized Approach within the Revised Return of Capital Adequacy Ratio. The form mandates banks to calculate on-balance sheet exposures across eight specific classes, including sovereign, public sector entity, and bank exposures, applying designated risk weights ranging from zero to 1250 percent. It further requires the calculation of off-balance sheet exposures by applying credit conversion factors to items such as direct credit substitutes and derivative contracts to determine the total risk-weighted amount for credit risk.
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