Regulatory Alerts2018-03-02
Added · Updated
Revised Return of Capital Adequacy Ratio (Form MA(BS)3) Completion Instructions Part V Operational Risk
Authorized institutions incorporated in Hong Kong must complete Form MA(BS)3(V) to calculate the risk-weighted amount for operational risk using the basic indicator approach (BIA), standardized approach (STO), or alternative standardized approach (ASA). Institutions are required to calculate capital charges based on the average gross income or loans and advances of the last three years, applying specific capital charge factors such as 15% for BIA and varying percentages from 12% to 18% for STO and ASA business lines. The final risk-weighted amount is derived by multiplying the calculated capital charge by 12.5, with specific rules provided for handling negative income, partial years of operation, and offsetting charges within a single year.
More like this from HKMA
HKMA published 11 documents in the last 30 days. We email you each new one the day it's published.