On 23 Dec 2025, the HKMA revised the completion instructions for Form MA(BS)12, the Return of Interest Rate Risk Exposures, clarifying reporting scope for banking vs. combined banking/trading books, mandating HKD/USD reporting, and specifying time band methodologies based on repricing dates. The updates also permit behavioural maturity reporting with HKMA approval and standardize form structure for on- and off-balance sheet positions.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
Opening Bank Accounts: Duties of Banks in Hong Kong to Combat Tax Evasion
Hong Kong money laundering laws require banks to assess the risk of tax evasion in evaluating bank account opening applications. Prospective customers applying
Opening a Bank Account in Hong Kong: Latest Regulatory Developments
For many new businesses, opening a bank account is a mission critical task. Unfortunately, as a result of significant growth in laws intended to combat money l
SPOTLIGHT ON
FAMILY OFFICES
Introduction
On 23 Dec 2025, the Hong Kong Monetary Authority (HKMA) issued revised completion instructions for the Return of Interest Rate Risk Exposures (Form MA(BS)12), updating the reporting requirements for authorized institutions under the Interest Rate Risk in the Banking Book (IRRBB) framework.
Reporting Scope Clarifications
The revisions clarify that locally incorporated authorized institutions subject to the market risk capital adequacy regime must report positions in the banking book only, while other locally incorporated institutions exempt from this regime and overseas incorporated institutions must report aggregate positions in both the banking book and trading book. This aligns reporting obligations with existing regulatory categorizations.
Currency and Form Requirements
Authorized institutions must report interest rate risk exposures in all major currencies as defined in the completion instructions, including at least Hong Kong dollar and US dollar (nil returns required for these currencies). The same return form must be used for each currency, with mandatory inclusion of HKD and USD regardless of exposure levels.
Time Band Methodology
The revisions specify that items must be reported under time bands based on the earliest interest repricing date, as detailed in the completion instructions. Institutions may request HKMA approval to report using behavioural maturity instead, provided they meet the criteria outlined in the instructions.
Form Structure and Supplementary Data
The updated form includes revised sections for reporting on-balance sheet positions (residential mortgage loans, deposits), off-balance sheet positions (exchange contracts, swaps), and dual perspectives (net earnings and economic value). It also mandates reporting of the total capital base for all currencies, with overseas institutions referencing their head office's capital base.
View the full article:Source
