Regulatory Alerts2018-03-02
Added · Updated
Revised Return of Capital Adequacy Ratio (Form MA(BS)3) Completion Instructions Part II Capital Base
The Hong Kong Monetary Authority issued these completion instructions to guide authorized institutions in Hong Kong on calculating their capital base for Capital Adequacy Ratio reporting using Form MA(BS)3(II). The document mandates that institutions determine their Tier 1 and Tier 2 capital by aggregating Common Equity Tier 1, Additional Tier 1, and Tier 2 elements while applying specific regulatory deductions and transitional arrangements under the Banking (Capital) Rules. It provides detailed item-by-item reporting requirements for CET1 components, minority interests in consolidated subsidiaries, and extensive deductions such as goodwill, intangible assets, and investments in own capital instruments.
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