10
investment will be treated as a risk asset with a
weighting of 10. We have also accepted the suggestion that "capital adequacy ratio" sounds more meaningful than "capital to risk assets ratio". I will be moving amendments to these two schedules accordingly.
Other amendments
23.
In addition to those mentioned above, I will be
moving a number of minor amendments dealing mainly with technical and drafting matters.
Implementation
24.
After enactment of the Bill, time will need to
be allowed for the authorized institutions and the
Commissioner of Banking's office to prepare for the new requirements, for example, the different liquidity ratio calculations, new information returns and seeking
various approvals from the Commissioner. The intention therefore is for the Bill to come into effect three
months after enactment
-
except for the new capital adequacy ratio. Since this ratio will place substantial requirements on some of the institutions concerned, it will be brought into effect in about two years' time.
Other issues
25.
Although there have been many amendments to this Bill, the placing of the final product on the statute book does not mean that with the passage of time it will not be further amended and improved. I will now
mention four issues.
Capital adequacy ratio
26.
First, the capital adequacy ratio, and in particular, the risk weightings attrached to various
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