On 26 Sep 2024, the HKMA finalised revisions to SPM modules and banking returns to implement the Banking (Exposure Limits) (Amendment) Rules 2023 (BELAR), effective 1 January 2025. The revisions retain internal aggregate intragroup exposure limit descriptions in SPM module CR-G-8 and update return templates and cross-references. Reporting via the STET system will commence from 31 March 2025.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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Introduction
On 26 Sep 2024, the Hong Kong Monetary Authority (HKMA) issued a letter to all Authorized Institutions finalising revisions to Supervisory Policy Manual (SPM) modules and banking returns to implement the Banking (Exposure Limits) (Amendment) Rules 2023 (BELAR), effective 1 January 2025.
Implementation of BELAR 2023
The revisions to SPM modules CR-L-1, CR-L-4, CR-G-8, and CR-G-9, alongside banking returns MA(BS)1F(a), MA(BS)1F(b), and MA(BS)28, are designed to operationalise the BELAR, which will come into effect on 1 January 2025. These changes follow industry consultations held in September 2023 and May 2024, with the HKMA incorporating feedback into the finalised versions.
Key Revisions
The primary revisions include retaining the descriptions of the internal aggregate intragroup exposure limit within SPM module CR-G-8 (instead of relocating them to CR-G-9 as initially proposed) and amending a disclosure-related item in the templates for returns MA(BS)1F(a) and MA(BS)1F(b). Additionally, cross-references in the Completion Instructions for return MA(BS)28 have been updated to align with the finalised BELAR and revised SPM modules CR-G-8 and CR-G-9.
Reporting Timeline and Technical Details
The STET software for the revised banking returns will be available for download from the HKMA’s supervisory communication website in early January 2025. Reporting institutions must submit the revised returns via the STET system, based on the updated Completion Instructions, starting from the reporting position as of 31 March 2025. Technical queries on return templates or STET submissions should be directed to the HKMA’s STET helpdesk, while other enquiries should be emailed to the Banking Policy team.
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