On 20 Dec 2024, the HKMA issued revised Completion Instructions for CCyB reporting return MA(BS)25, updating geographic allocation methodology under SPM CA-B-3 and mandating forward-looking CCyB ratio calculations for four subsequent quarters. The changes standardize RWA reporting, require jurisdiction-specific JCCyB ratio application, and specify submission timelines for Combined and Consolidated returns under BCR section 30(1).
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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Introduction
On 20 Dec 2024, the Hong Kong Monetary Authority (HKMA) issued revised Completion Instructions for the Countercyclical Capital Buffer (CCyB) Quarterly Reporting Return MA(BS)25, updating the methodology for calculating CCyB ratios and associated reporting requirements under the Banking (Capital) Rules (BCR).
Revised Reporting Framework
The revised instructions replace the prior SPM module CA-B-3, mandating Authorized Institutions (AIs) to report geographic allocation of private sector credit exposures using updated methodology. AIs must now calculate CCyB ratios using Formula 1A in BCR section 30(1), incorporating risk-weighted amounts (RWA) for credit risk (Columns 1-5), market risk (Column 6), and jurisdiction-specific CCyB ratios (Column 8). The 'Total across jurisdictions' row now standardizes reporting for all relevant jurisdictions, including Hong Kong, Mainland China, and others alphabetically.
Forward-Looking Information Requirements
The revised return mandates reporting of forward-looking CCyB ratios for the next four quarters (Qo+1 to Qo+4) in Columns 10-17, based on announced jurisdictional CCyB ratios (JCCyB) as of each future quarter-end. AIs must assume unchanged RWA and geographic allocation for forecasting, per BCR section 30(1), with the CCyB ratio calculated as the weighted average of jurisdictional JCCyB ratios applied to RWA (Column 9 for current quarter, Columns 11/13/15/17 for future quarters).
Submission Timelines and Format
Submission deadlines are standardized: Combined returns (solo basis) must be submitted within one month for domestic-only AIs or six weeks for those with overseas branches; Consolidated returns require six weeks unless otherwise advised. Amounts must be reported to the nearest thousand in HK$ or HK$ equivalents, using prevailing T/T rates for foreign currency conversion. The return must be submitted jointly with MA(BS)3, with deadlines deferred to the next working day if falling on a public holiday.
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