Regulatory Alerts2018-03-02
Added · Updated
Revised Return of Capital Adequacy Ratio (Form MA(BS)3) Completion Instructions Part IIIb Standardized Credit Risk Approach
Authorized institutions incorporated in Hong Kong must complete Form MA(BS)3(IIIb) to report risk-weighted amounts for credit risk using the standardized approach under Part 4 of the Banking (Capital) Rules. The instructions specify that the form covers on-balance sheet and off-balance sheet exposures in the banking book, default risk exposures to counterparties under securities financing transactions and derivatives in the trading book, and certain market risk positions exempted from Part 8. Reporting entities must classify exposures into 13 mutually exclusive classes, apply risk-weights based on external credit assessment institution ratings, and calculate amounts net of specific provisions while avoiding double counting of exposures.