Cap. 155Q 《銀行業(流動性)規則》Banking (Liquidity) Rules

becomes less than 100% but not less than 90% at any time on a day (first shortfall day); and

has been not less than 100% at all times in the 12-month period immediately before the first shortfall day.

the first shortfall day (including that day); and

the earlier of the occurrence of the following—

determine the aggregate of its HQLA held by the members of its consolidated group;

determine the aggregate of the total net cash outflows of the members of its consolidated group; and

ensure that all inter-branch or inter-company balances with, and transactions between, the members of its consolidated group are offset in that calculation.

a category 1 institution incorporated in Hong Kong calculates its LCR on an unconsolidated basis or consolidated basis, or the basis specified in a notice to the institution under rule 12; and

the institution has an overseas branch that operates, or a specified associated entity that is incorporated, in a host country,

any liquidity requirements for the equivalent of an LCR and applicable to the deposits and funding concerned are imposed by the relevant banking supervisory authority in the host country; and (L.N. 176 of 2017)

those liquidity requirements are imposed for—

no liquidity requirements mentioned in subrule (2) are imposed by the relevant banking supervisory authority in the host country; or (L.N. 176 of 2017)

the authority, for the purposes of the calculation of the equivalent of an LCR insofar as the calculation relates to the deposits and funding concerned, does not adopt those liquidity requirements or does not apply those liquidity requirements to the institution, (L.N. 176 of 2017)

is satisfied that the liquidity requirements imposed by the relevant banking supervisory authority in the host country are, for the purposes of the calculation of the equivalent of an LCR insofar as the calculation relates to the types of the deposits and funding concerned, less stringent than the requirements of these Rules as applicable to the calculation of the institution’s LCR insofar as the calculation relates to the deposits and funding concerned; and

has given the institution a notice in writing stating the matter mentioned in paragraph (a), (L.N. 176 of 2017)

any HQLA held by a member of its consolidated group (except to the extent that the total net cash outflows of the member are also included in the calculation); and

any surplus HQLA held by the member.

the surplus HQLA is at all times freely transferable from the member of the category 1 institution’s consolidated group that holds the surplus HQLA to the institution’s Hong Kong office; and

without limiting paragraph (a) and subject to subrule (3)—

is only required to take into account the applicable laws, regulations and supervisory requirements of the country in which the surplus HQLA is held; and

must have in place and maintain adequate processes to identify and monitor the applicable laws, regulations and supervisory requirements referred to in paragraph (a).

each asset included in the HQLA satisfies all the requirements of these Rules that are applicable to the inclusion of that asset in the HQLA;

an asset included in the HQLA that ceases to satisfy any requirement of these Rules applicable to the inclusion of that asset in the HQLA is identified as soon as is practicable; and

without limiting rule 26, prompt action is taken to exclude from the HQLA an asset identified as referred to in paragraph (b).

managing its ability to access relevant foreign exchange markets for the exchange of funds from one currency to another taking into account the risk that the access to such markets may be hindered in times of financial stress;

managing its HQLA so that the HQLA is able to generate liquidity to meet the institution’s total net cash outflows in different currencies; and

subject to Division 4, managing the composition of its HQLA by currency so that the HQLA is broadly consistent with the distribution of its total net cash outflows by currency.

have in place and maintain adequate policies and limits to control the level of concentration of its HQLA within asset classes with respect to the type of asset, type of issue, type of issuer and, without limiting rule 27(2)(c), type of currency; and

subject to subrule (2), ensure that the HQLA is well diversified within each of the asset classes comprising the HQLA.

currency notes and coins;

withdrawable central bank reserves;

EF debt securities;

qualifying debt securities issued by the sovereign or central bank of a country in which the institution is incorporated; (14 of 2025 s. 188)

qualifying debt securities issued by the sovereign or central bank of a country in which the institution operates. (14 of 2025 s. 188)

a reference in subsection (2)(d) to “the sovereign or central bank of a country in which the institution is incorporated” includes the sovereign or central bank of Country A; and

a reference in subsection (2)(e) to “the sovereign or central bank of a country in which the institution operates” includes the sovereign or central bank of Country A. (14 of 2025 s. 188)

to cease to include in its HQLA the asset specified in the notice on the ground that the Monetary Authority is satisfied that it no longer satisfies, or has never satisfied, the requirement of these Rules as specified in the notice that is applicable to the inclusion of that asset in its HQLA; or

without limiting rules 27(2) and 28(1), to make the changes specified in the notice to its HQLA on the ground that the Monetary Authority is satisfied that those changes are necessary in order to mitigate the risks associated with the institution’s failure, as specified in the notice, to comply with rule 27(2) or 28(1).

the prevailing banking supervisory standards issued by the Basel Committee relating to the inclusion of the relevant asset in HQLA; and

the conditions (if any) specified in the notice relating to the inclusion of the relevant asset in the institution’s HQLA.

the institution has entered into a securities financing transaction that matures within the LCR period concerned and the transaction involves the exchange, during that period, of an HQLA qualifying asset of the institution for another HQLA qualifying asset from the counterparty to the transaction;

the HQLA qualifying asset from the counterparty satisfies, or will satisfy when it is given to the institution, all the requirements of rule 25(b) and (c) applicable to the asset; and

the institution satisfies, or will satisfy when it is given the HQLA qualifying asset from the counterparty, all the requirements of rule 25(d) applicable to the institution insofar as those requirements relate to the asset.

by the use of Formula 2, calculate the total weighted amount of its HQLA after the reversal of the relevant securities financing transaction concerned; and

take the lower amount of the 2 amounts calculated under paragraph (a) and rule 33 as the total weighted amount of its HQLA for the purposes of rule 32.

the total weighted amount of level 1 assets is the sum of the weighted amount of assets that fall within each of the asset subclasses specified in column 1 of Table 1 in Schedule 4A (Table 4A-1) under the asset class of level 1 assets, calculated by multiplying together— (L.N. 176 of 2017)

the total weighted amount of level 2A assets is the sum of the weighted amount of assets that fall within each of the asset subclasses specified in column 1 of Table 4A-1 under the asset class of level 2A assets, calculated by multiplying together— (L.N. 176 of 2017)

the total weighted amount of level 2B assets is the sum of the weighted amount of assets that fall within each of the asset subclasses specified in column 1 of Table 4A-1 under the asset class of level 2B assets, calculated by multiplying together— (L.N. 176 of 2017)

the principal amount of the level 1 assets constituting that portion of foreign currency-denominated HQLA held by the institution to cover its HKD LCR mismatch (relevant portion); and

the foreign exchange haircut specified in Table 2 in Schedule 4A as applicable to those assets. (L.N. 176 of 2017)

Table 2

(Repealed L.N. 176 of 2017)

calculate its total expected cash outflows, in accordance with rule 41;

subject to subrule (2), calculate its total expected cash inflows in accordance with rule 42; and

deduct its total expected cash inflows calculated under paragraph (b) from its total expected cash outflows calculated under paragraph (a).

stable retail deposits;

less stable retail deposits;

retail term deposits;

small business funding;

operational deposits;

unsecured wholesale funding (other than operational deposits) provided by—

unsecured wholesale funding other than funding mentioned in paragraphs (d), (e) and (f);

debt securities and prescribed instruments issued by the institution and redeemable within the LCR period;

liabilities or obligations arising from secured funding transactions (including securities swap transactions);

contractual net cash outflows arising from derivative contracts;

liabilities or obligations arising from derivative contracts or other transactions (which are not otherwise covered in paragraph (j)) for covering additional liquidity needs arising from the following situations—

potential drawdown of undrawn committed facilities (including committed credit facilities and committed liquidity facilities);

contractual lending obligations to the Monetary Authority for the account of the Exchange Fund, central banks and financial institutions not otherwise covered in this subrule;

contractual lending obligations to the institution’s retail customers and other customers that are not otherwise covered in this subrule, the aggregate amount of which exceeds 50% of total contractual payment obligations from the same types of customer to the institution;

other contingent funding obligations, whether contractual or non-contractual; and

other contractual cash outflows.

the deposit is pledged as collateral against a loan that will not be settled within the LCR period;

the pledge arrangement concerned is subject to a legally enforceable contract that effectively disallows withdrawal of the deposit before the loan is fully settled; and

the amount of deposit to be excluded from the calculation does not exceed the outstanding balance of the loan.

subrule (2) does not apply to the deposit; and

the category 1 institution must, in the calculation of its total expected cash outflows insofar as the calculation relates to that deposit and facility, use the higher of the outflow rates that are respectively applicable to the deposit or facility as if the deposit were not a pledged deposit.

subrule (2) only applies to the drawn portion of the facility; and

subrule (3) only applies to the undrawn portion of the facility.

the funding is callable by the fund provider within the LCR period;

the earliest possible contractual maturity date of the funding falls within the LCR period; or

the funding is either payable on demand or does not have a specific maturity date.

the funding obtained by the category 1 institution is callable at its option within the LCR period; and

there is market expectation that the institution will exercise that option and thus cause that funding to be repaid before its contractual maturity date,

the principal amount of each of its on-balance sheet liabilities and off-balance sheet obligations of the types listed in subrule (1); and

an outflow rate determined in accordance with subrule (9).

the applicable outflow rate is to be determined by the relevant banking supervisory authority in a country and therefore is not specified in the Basel III LCR document; or

the Monetary Authority is satisfied that having regard to the prevailing circumstances in Hong Kong, it is prudent and reasonable to apply a higher outflow rate than that specified in the Basel III LCR document,

the obligations relate to potential liquidity drawn by either of the following that is not consolidated for the purposes of rule 11(1)—

there is a reasonable expectation that the institution will be the main provider of liquidity should the joint venture or entity concerned be in need of liquidity,

notify the Monetary Authority of the existence of the contingent funding obligations and the circumstances giving rise to the obligations; and

agree with the Monetary Authority the methodology for determining the expected cash outflow arising from the obligations on a case-by-case basis.

the outflow rate of 10% specified in Table 3 in Schedule 4A in respect of less stable retail deposits is not adequate to cover the liquidity risks associated with all or part of the deposits held by a category 1 institution; and (L.N. 176 of 2017)

it is prudent and reasonable to increase the outflow rate to a level above 10% applicable to the institution for the deposits concerned,

include only contractual cash inflows (including any accrued interest) that—

assume that those inflows are received by the institution at the latest possible date based on contractual rights available to its customers; and

not include any cash inflows that are contingent in nature.

secured lending transactions (including securities swap transactions);

secured or unsecured loans (other than those that fall within paragraph (a));

release of balances maintained by the institution in segregated accounts in accordance with requirements for the protection of customer assets;

maturing securities not included by the institution in its HQLA;

undrawn facilities granted to the institution by another financial institution;

operational deposits placed by the institution at other financial institutions;

contractual net cash inflows arising from derivative contracts; and

other contractual cash inflows arising from assets, transactions or activities not otherwise covered in this subrule.

the principal amount of each of its assets (whether on-balance sheet assets or off-balance sheet assets) of the types listed in subrule (2); and

an inflow rate determined in accordance with subrule (4).

adequate policies and limits to ensure that its liquidity position is not unduly reliant on the receipt of expected cash inflows from a limited number of wholesale customers; and

adequate policies and systems for managing assets received as collateral from its counterparties under secured lending transactions so that it is able to fulfil any contractual obligation under those transactions to return one or more of those assets to the counterparty concerned whenever the counterparty decides not to renew the secured lending transaction concerned on its maturity.

determine the aggregate of its liquefiable assets held by the members of its consolidated group;

determine the aggregate of the qualifying liabilities (after deductions) of the members of its consolidated group; and

ensure that all inter-branch or inter-company balances with, and transactions between, the members of its consolidated group are offset in that calculation.

the total of the weighted amounts calculated in accordance with subrule (6) of each qualifying liability item specified in Table C in section 2 of Schedule 5; and

subject to subrule (5), the total of the weighted amounts calculated in accordance with subrules (6) and (7)(b) of each deductible item specified in Table D in that section.

the principal amount of the item; and

the liquidity conversion factor specified in Table A, B, C or D in that section in relation to the item.

the weighted amount of the institution’s net due from banks to be included in its liquefiable assets (under item 4 in Table A in section 2 of Schedule 5) in accordance with subrule (3) must not exceed 40% of the total weighted amount of its qualifying liabilities as referred to in subrule (4)(a) (40% cap); and

the weighted amount of the institution’s net due from banks exceeding the 40% cap, if any, must be included as a deductible item (under item 3 in Table D in that section) as referred to in subrule (4)(b) for the purpose of calculating its qualifying liabilities (after deductions).

the asset must be readily monetizable;

the asset must not be overdue or in default;

the asset must be free from encumbrances and there must be no regulatory, legal, contractual or other restrictions that inhibit the category 2 institution from liquidating, selling, transferring or assigning the asset;

the value of the asset must be readily identifiable and measurable;

subject to subrule (3), the asset must be freely transferable and available to the category 2 institution and must not be subject to any liquidity transfer restriction;

the asset must not be a subordinated debt security;

for a listed ordinary share, the share—

if the asset is a structured financial instrument, the structure of the instrument must be simple and standardized; and

the asset must be denominated in Hong Kong dollars or in a currency freely convertible into Hong Kong dollars.

except to the extent that the qualifying liabilities (after deductions) of the member are also included in the calculation; and

unless the assets so included satisfy all other relevant requirements in subrules (1) and (2).

granting approval to the institution, with effect from the date, or the occurrence of an event, specified in the notice, to include the RMBS, other debt security or prescribed instrument specified in the notice in its liquefiable assets if the institution demonstrates to the satisfaction of the Monetary Authority that—

if the Monetary Authority is not satisfied as referred to in paragraph (a), refusing to grant the approval and specifying in the notice the reasons why the Monetary Authority is not so satisfied.

attach to the approval any conditions (including those for amending the conditions already attached to the approval);

cancel any conditions attached to the approval.

on the date specified in the notice; or

when the event specified in the notice occurs.

each asset included in the liquefiable assets satisfies all the requirements of this Part that are applicable to its inclusion in the liquefiable assets;

an asset included in the liquefiable assets which ceases to satisfy any requirement of this Part applicable to its inclusion in the liquefiable assets is identified as soon as is practicable; and

prompt action is taken to exclude from the liquefiable assets an asset identified as referred to in paragraph (b).

is not capable of generating liquidity for the institution within 1 month; or

is not, or is no longer, sufficiently liquid in private markets or readily monetizable by other means to be included in any category 2 institution’s liquefiable assets.

to cease to include in its liquefiable assets the asset specified in the notice on the ground that the Monetary Authority is satisfied that it no longer satisfies, or has never satisfied, the requirement of these Rules as specified in the notice that is applicable to the inclusion of that asset in its liquefiable assets; or

without limiting rule 50, to make the changes specified in the notice to its liquefiable assets on the ground that the Monetary Authority is satisfied that those changes are necessary in order to mitigate the liquidity risk associated with the institution’s failure, specified in the notice, to comply with that rule.

the deposit is pledged as collateral against a loan that will not be settled within 1 month;

the pledge arrangement concerned is subject to a legally enforceable contract that effectively disallows withdrawal of the deposit before the loan is fully settled;

the deposit would otherwise be included in the calculation of qualifying liabilities under rule 48; and

the amount of deposit to be excluded from the calculation does not exceed the outstanding balance of the loan.

is expected to be received within 1 month; and

arises from assets (whether on-balance sheet assets or off-balance sheet assets) that are fully performing and in respect of which the institution has no reason to expect a default within 1 month.

assume that a cash inflow is received by the institution at the latest possible date based on contractual rights available to its customers; and

not include any cash inflow that is contingent in nature.

the special purpose vehicle is consolidated with the institution;

the capital instruments meet the qualifying criteria set out in Schedule 4B to the Capital Rules; and

the only asset of the special purpose vehicle is its investment in the capital of the institution in a form that meets the qualifying criteria set out in Schedule 4B to the Capital Rules,

the special purpose vehicle is consolidated with the bank subsidiary;

the capital instruments meet the qualifying criteria set out in Schedule 4B to the Capital Rules; and

the only asset of the special purpose vehicle is its investment in the capital of the bank subsidiary in a form that meets the qualifying criteria set out in Schedule 4B to the Capital Rules,

the special purpose vehicle is consolidated with the institution;

the capital instruments meet the qualifying criteria set out in Schedule 4C to the Capital Rules; and

the only asset of the special purpose vehicle is its investment in the capital of the institution in a form that meets the qualifying criteria set out in Schedule 4C to the Capital Rules,

the special purpose vehicle is consolidated with the bank subsidiary;

the capital instruments meet the qualifying criteria set out in Schedule 4C to the Capital Rules; and

the only asset of the special purpose vehicle is its investment in the capital of the bank subsidiary in a form that meets the qualifying criteria set out in Schedule 4C to the Capital Rules,

the replacement costs of the contracts mentioned in subrule (1) are not to be included; and

subrules (2), (3) and (4) apply. (L.N. 84 of 2019)

offsetting those contracts in negative value with those contracts in positive value;

adding variation margins (whether in the form of cash or other assets) posted by the institution to the counterparty under those contracts; and

deducting variation margins in the form of cash received by the institution from the counterparty under those contracts.

must be included in the institution’s total derivative assets (after adjustments); and

must not be included in the institution’s total derivative liabilities (after adjustments) and total derivative liabilities (before adjustments). (L.N. 84 of 2019)

must be included in the institution’s total derivative liabilities (after adjustments) and total derivative liabilities (before adjustments); and

must not be included in the institution’s total derivative assets (after adjustments). (L.N. 84 of 2019)