Hong Kong Regulations

BANKING (CAPITAL) RULES - SECT 21

Measures which may be taken by Monetary Authority if authorized institution using approach used by parent bank no longer satisfies specified requirements

(1) Where—

   (a)  an authorized institution uses the approach used by its parent  bank
        to calculate its market risk; and

   (b)  the Monetary Authority is satisfied that, if the institution were to
        make a fresh application under section 20(1) for approval to use that
        approach to calculate its market risk, the approval would be
        refused—

        (i)    by virtue of section 20(3); or

        (ii)   because the entity which was the parent bank of the institution
               has ceased to be the parent bank of the institution, the
               Monetary Authority may, by notice in writing given to the
               institution, revoke the approval concerned under
               section 20(2)(a) beginning on such date, or the occurrence of
               such event, as specified in the notice.

(2) Immediately upon the revocation under subsection (1) of an approval under
section 20(2)(a) granted to an authorized institution, section 17(1)(a) and
(b) applies to the institution.