Revisions to banking returns and surveys

Our Ref: B1/15C

17 October 2022 The Chief Executive All Authorized Institutions Dear Sir/Madam, Revisions to banking returns and surveys Following a recent review of the HKMA’s returns and surveys in an effort to strengthen consolidated supervision and streamline AIs’ reporting requirements, I am writing to inform you that the HKMA has revised the Return of Mainland Activities (Form MA(BS)20), the Monthly Survey on Asset Quality (Form MA(BS)2AH) and the Quarterly Survey on Exposures to Mega Corporates. The key changes are set out below: (I) Return of Mainland Activities The reporting of top non-bank Mainland China exposures (Part 7) will no longer be required. (II) Monthly Survey on Asset Quality For Part III, AIs will no longer be required to provide a breakdown of top criticized assets with respect to their Mainland subsidiaries. Instead, AIs should report their top criticized assets on a consolidated basis, with further breakdowns into Hong Kong offices and outside of Hong Kong offices. In addition, AIs will be required to report their top non-bank Mainland China exposures that are classified, also on the abovementioned basis. (III) Quarterly Survey on Exposures to Mega Corporates AIs will no longer be required to provide breakdowns of exposures to specified corporates with respect to Mainland branches and subsidiaries. Instead, AIs should report their exposures on a consolidated basis, with further breakdowns into Hong Kong offices and outside of Hong Kong offices.

• 2 - The changes to the abovementioned return and surveys together with the associated completion instructions are enclosed. AIs are expected to adopt the new reporting templates as soon as practicable, and in any case, no later than the position date of end-June 2023. Should you have any questions regarding the above, please contact Mr Horace Mak on 2878-8246 or Mr Matthew Kwok on 2878-1421. Yours faithfully, Raymond Chan Executive Director (Banking Supervision) Encl