Hong Kong Regulations

BANKING (CAPITAL) RULES - SECT 49

Provisions supplementary to section 48(2)

(1) An authorized institution shall—

   (a)  subject to paragraph (c) and subsection (2), deduct from its
        core capital 50% of any specified amount;

   (b)  subject to paragraph (c) and subsection (2), deduct from its
        supplementary capital 50% of any specified amount; and

   (c)  deduct from its core capital such amount of any specified  amount
        which cannot be deducted under paragraph (b) because it exceeds the
        amount of supplementary capital available for such deduction under
        that paragraph.

(2) It is hereby declared that the amount to be deducted under
section 48(2)(h) by an authorized institution from its core capital and
supplementary capital—

   (a)  is in addition to any other deduction the institution is required to
        make under section 48(2) from its core capital and
        supplementary capital in respect of the subsidiary concerned of the
        institution; and

   (b)  represents the amount by which that subsidiary is deficient in meeting
        its minimum capital requirements.