Hong Kong Regulations

BANKING (CAPITAL) RULES - SECT 46

Provisions supplementary to section 42(1)(g) and (h)

An authorized institution shall—

   (a)  in the case of a debt instrument falling within section  42 (1)(g) or
        a share falling within section 42(1)(h), for the purposes of
        calculating its supplementary capital, discount by 20% the original
        amount of the debt instrument or share, as the case may be, each year
        during the 4 years immediately preceding the maturity of the debt
        instrument or share, as the case may be; and

   (b)  exclude from its supplementary capital any amount by which the sum of
        the amounts falling within section 42(1)(g) and (h) exceeds 50% of the
        institution's core capital—

        (i)    after making the deductions therefrom required by section  48
               (1); but

        (ii)   before making the deductions therefrom required by section  48
               (2).