Banking (Disclosure) Rules - Chapter 155M

Extract

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Banking (Disclosure) Rules - Chapter 155M

BANKING (DISCLOSURE) RULES - LONG TITLE

Empowering section VerDate:01/01/2007

(Cap 155, section 60A)

[1 January 2007] L.N.232 of 2006

(L.N. 229 of 2006)

BANKING (DISCLOSURE) RULES - SECT 1

(Omitted as spent) VerDate:01/01/2007

PART 1 PRELIMINARY

(Omitted as spent)

BANKING (DISCLOSURE) RULES - SECT 1

Commencement VerDate:

PART 1 PRELIMINARY

These Rules shall come into operation on the day appointed for the commencement of section 2 of the Banking (Amendment) Ordinance 2005 (19 of 2005).

BANKING (DISCLOSURE) RULES - SECT 2

Interpretation VerDate:01/01/2007

(1) In these Rules, unless the context otherwise requires—

"active market" , in relation to any financial assets, means a market at which the quoted price of the assets—

(a) is readily obtainable and regularly available from an exchange, dealer, broker, industry group, pricing service or regulatory agency; and

(b) reflects actual and regularly occurring transactions involving the assets, which take place on an arm's length basis;

"annual reporting period" , in relation to an authorized institution, means the institution's last financial year;

"associate" , in relation to an authorized institution, means a person (including a company, a partnership and any other unincorporated body but excluding an individual)—

(a) over which the institution has significant influence; and

(b) which is neither a subsidiary nor a joint venture in which the institution has an interest;

"available-for-sale" has the meaning assigned to it by section 35 of the Capital Rules;

"capital requirements" , in relation to—

(a) the measure of an authorized institution's non-securitization exposures to credit risk calculated in accordance with Part 4, 5 or 6, as the case requires, of the Capital Rules; and

(b) the measure of an authorized institution's securitization exposures to credit risk calculated in accordance with Part 7 of the

Capital Rules, means the amount of capital required to be held by the institution for that risk based on the risk-weighted amount for that risk multiplied by 8%;

"Capital Rules" means the Banking (Capital) Rules (Cap 155 sub. leg. L);

"cash and balances with banks" means—

(a) cash in the till;

(b) demand deposits with banks; and

(c) deposits with banks which have a residual contractual maturity of not more than one month;

"certificate of deposit" means any certificate of deposit (including a certificate of deposit held for trading purposes) regardless of maturity;

"consolidation requirement" has the meaning assigned to it by section 35 of the Capital Rules;

"debt securities" has the meaning assigned to it by section 35 of the Capital Rules;

"delta-weighted position" has the meaning assigned to it by section 281 of the Capital Rules;

"deposits and balances from banks" , in relation to an authorized institution—

(a) subject to paragraph (b), means all amounts which arise out of banking transactions owed by the institution to other banks;

(b) does not include such amounts taking the form of debt securities or certificates of deposit issued by the institution;

"disclosure statement" , in relation to an authorized institution—

(a) means, except in Part 8, a disclosure statement prepared by the institution pursuant to section 6(1);

(b) means, in Part 8, a disclosure statement prepared by the institution pursuant to section 88(1);

"effective interest method" , in relation to a financial asset (including a group of financial assets) or financial liability (including a group of financial liabilities), means a method of—

(a) calculating the amortized cost of the asset or liability, as the case may be; and

(b) allocating the interest income and interest expense of the asset or the interest income and interest expense of the liability, as the case may be, over the expected life of the asset or liability, as the case may be;

"effective interest rate" , in relation to a financial asset or financial liability, means an interest rate which is calculated by—

(a) exactly discounting—

(i) the estimated future cash receipts and cash payments through the expected life (or, where appropriate, a shorter period) of the financial asset; or

(ii) the estimated future cash receipts and cash payments through the expected life (or, where appropriate, a shorter period) of the financial liability, as the case may be, to the net carrying amount of the asset or liability, as the case may be; and

(b) including all amounts received and paid in respect of the asset or received and paid in respect of the liability, as the case may be, which are an integral part of the interest rate (including transaction costs and all other premiums or discounts);

"exchange rate-related derivative contract" has the meaning assigned to it by section 281 of the Capital Rules;

"financial assets or financial liabilities measured at fair value through profit or loss" , in relation to an authorized institution, means financial assets or financial liabilities—

(a) w...

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