Revised Return of International Banking Statistics (Form MA(BS)21)

Our Ref.: B4/1C 30 June 2023 The Chief Executive All Authorized Institutions Dear Sir/Madam, Revised Return of International Banking Statistics Following consultation with industry associations, the HKMA has revised the Return of International Banking Statistics (Form MA(BS)21) (“IBS Return”) and the accompanying completion instructions. The revised IBS Return and the completion instructions are enclosed, and changes since the last version in use are highlighted for the ease of reference. The revisions to the IBS Return reflect the changes introduced by the Bank for International Settlements (“BIS”) in July 2019 to its guidelines for reporting the BIS international banking statistics. These changes aim at:- (i) aligning the perimeter for reporting the consolidated banking statistics following a prudential approach to consolidation instead of an accounting approach; (ii) providing more detailed guidance on the reporting of statistics related to derivatives activities; (iii) clarifying the criteria for recognising risk transfers and the reporting treatment of repo collateral; and (iv) harmonising data definitions across jurisdictions.

• 2 - In view of the complexity of the BIS reporting guidelines, the HKMA considers that a short period of parallel reporting during the transition can facilitate authorized institutions (“AIs”) to familiarise themselves with the new reporting requirements. Accordingly, AIs are required to submit both the existing and revised IBS Returns for the reporting position of end-September 2024. During the parallel run, the submission deadline for the existing IBS Return will be the same as the current requirement (i.e. one month after the reporting date for Hong Kong office position and six weeks for consolidated position), but AIs will be given eight weeks to prepare and submit the revised IBS Return. Afterwards, the existing IBS Return will be discontinued and AIs should submit the revised IBS Return according to the submission timelines specified in the completion instructions, starting from the position of end-December 2024. Should you have any questions regarding the above, please contact Mr Kenneth Chow on 2878-1975. Yours faithfully, Raymond Chan Executive Director (Banking Supervision) Encl cc: The Chairperson, The Hong Kong Association of Banks The Chairperson, The DTC Association FSTB (Attn: Mr Justin To)