HKMA SPM CA-G-1: CA-G-1 Overview of Capital Adequacy Regime for Locally Incorporated Authorized Institutions

Sets the MA's policy on capital adequacy and the framework for the capital adequacy ratio under the Banking (Capital) Rules: the approach to supervising capital adequacy, solo and consolidated CAR and leverage ratio requirements, calculation of the CAR, the composition of the capital base (Tier 1 and Tier 2, self-assessment of capital instruments, point of non-viability, regulatory deductions), capital buffers, the risk-weighting framework for credit risk (including counterparty credit risk and exposures to central counterparties), market risk, operational risk and securitisation, and the Pillar 2 and disclosure links. Classification: a statutory guideline issued by the Monetary Authority under the Banking Ordinance §7(3); version V.5, 19.12.25; applies to locally incorporated AIs.