A222
Ord. No. 27/86
Item
(b)
(c)
(d)
(e)
(S)
(g)
(h)
(i)
(j)
BANKING
Nature of item
Import bills and export bills held by the institution that mature within 6 months or are payable after sight.
Loans made by the institution to registered deposit-taking companies, being loans that mature or are callable within 1 year and are not subordinated to the claims of ordinary creditors of the borrowers.
Debt securities held by the institution that were issued by registered deposit-taking companies, are redeemable within 1 year and are not subordinated to the claims of ordinary creditors of the issuers.
Loans made by the institution that are guaranteed by registered deposit-taking companies and mature or are callable within 1 year. Debt securities held by the institution that are guaranteed by registered deposit-taking companies and are redeemable within 1 year.
Guarantees given by the institution in respect of the financial liabilities of registered deposit-taking companies.
Contingent liabilities of the institution that are guaranteed by regis- tered deposit-taking companies.
Underwriting commitments of the institution that have subsisted for not less than 3 months.
All contingent liabilities of the institution not specified elsewhere in this Table.
Category IV-risk weight 10
Item
(a)
Nature of item
Equity investments by the institution in any company, not being a subsidiary of the institution, in which the institution holds the bene- ficial ownership, directly or indirectly, of not less than 20 per cent of the share capital.
Category V-risk weight 1.0
Item
(a)
Nature of item
All assets not specified elsewhere in this Table.
FOURTH SCHEDULE
[ss. 102 & 135(3).]
LIQUIDITY RATIO
1.
In this Schedule-
"relevant bank" means-
(a) any authorized institution; and
(b) any bank incorporated outside Hong Kong which is not licensed under this Ordinance, except a bank which is, in the opinion of the Commissioner, not adequately supervised by an appropriate, recognized banking supervisory authority in the place in which it is incorporated;
BANKING
Ord. No. 27/86
A223
"one-month liability" in relation to any authorized institution or relevant bank
means-
(a) any liability, other than a contingent liability, the effect of which will or could be to reduce within 1 month the liquefiable assets of that institution or relevant bank; and
(b) any contingent liability that in the opinion of the Commissioner may result in a reduction within 1 month of the liquefiable assets of that institution or relevant bank.
2. The liquidity ratio of an authorized institution shall be calculated as the ratio, expressed as a percentage, between its liquefiable assets, as specified in paragraph 3 and its qualifying liabilities, as specified in paragraph 4.
3. The liquefiable assets of an authorized institution shall be the sum, calcul- ated in Hong Kong dollars, of the following amounts--
(a) the amount, if any, by which its total one-month liabilities to relevant banks are exceeded by the total one-month liabilities of relevant banks to it;
(b) currency notes and coins held by the institution in Hong Kong dollars or in
any currency freely convertible into Hong Kong dollars;
(c) repayments to the institution in respect of loans made by it that are
repayable by instalments, being repayments---
(i) which will fall due within 1 month;
(ii) in respect of which the institution has no reason to expect any default; and
(iii) which are not otherwise taken into account in calculating the liquefiable assets of the institution;
(d) the amounts that the institution can realize within 1 month (after deduction of the costs of such realization) for such of its following assets as are available to meet any or all of its qualifying liabilities--
(i) export bills maturing within 6 months, or payable after sight, and discountable in Hong Kong dollars or in a currency freely convertible into Hong Kong dollars;
(ii) securities that were issued, or are the subject of any guarantee or indemnity given, by the Government or by any government approved by the Commissioner for the purposes of this sub-paragraph;
(iii) other bills, certificates, notes, paper or debt securities which-
(A) are negotiable;
(B) have a remaining term to maturity of not more than 10 years; and (C) are denominated and traded in Hong Kong dollars or in a
currency freely convertible into Hong Kong dollar,
except for any that are issued by a person or government specified for the purposes of this sub-paragraph by the Commissioner by notice in writing served upon the authorized institution;
(iv) gold.
4. The qualifying liabilities of an authorized institution shall be the sum, calculated in Hong Kong dollars, of
(a) the amount, if any, by which the total one-month liabilities of relevant banks to the authorized institution are exceeded by its total one-month liabilities to relevant bank; and
(b) the total of its other one-month liabilities.
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