On 26 Sep 2024, the HKMA published the revised Return of Large Exposures (MA(BS)28), effective March 2025, to standardize reporting for authorized institutions under the Banking Ordinance. The form requires quarterly submissions within one month of quarter-end, detailing exposures to connected parties, the twenty largest exposures, exempted exposures, and intragroup exposures, with mandatory CRM adjustments and BELR deductions as per regulatory rules.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
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Introduction to Revised Reporting Form
On 26 Sep 2024, the Hong Kong Monetary Authority (HKMA) issued a revised version of the Return of Large Exposures (MA(BS)28), effective from 03/2025, to update the reporting template for authorized institutions under the Banking Ordinance. This revision standardizes the structure and content of large exposures reporting to align with regulatory requirements.
Reporting Requirements and Deadlines
Authorized institutions must submit the completed MA(BS)28 return to the HKMA within one month after the end of each quarter, as mandated under section 63(2) of the Banking Ordinance. Submission deadlines falling on public holidays are deferred to the next working day. The form must be completed strictly in accordance with HKMA's specified instructions to ensure all requisite information is provided in the required format.
Form Structure and Key Sections
The revised MA(BS)28 form comprises five core sections: (1) General information on the authorized institution's reporting category; (2) Exposures to connected parties exceeding 5% of Tier 1 capital; (3) Twenty largest exposures (and those ≥10% of Tier 1 capital) before and after Credit Risk Mitigation (CRM); (4) Exempted exposures (excluding intragroup) ≥10% of Tier 1 capital; and (5) Intragroup exposures (≥5% of Tier 1 capital for local institutions or top 20 for overseas institutions). Each section mandates detailed breakdowns of on-balance sheet, trading book, off-balance sheet, default risk, and indirect exposures, with specific columns for CRM adjustments and BELR deductions per rule 57.
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