Hong Kong Regulations

BANKING (CAPITAL) RULES - SECT 66

Other exposures which are not past due exposures

(1) This section applies to—

   (a)  equities held by an authorized institution which do not fall within
        section 62; and (L.N. 267 of 2006)

   (b)  any other on-balance sheet exposures of the institution which do not
        fall within any of sections 55, 56, 57, 58, 59, 60, 61, 62, 63, 64, 65
        and 67 (including accrued interest if subsection (5) is applicable).

(2) Subject to subsections (3) and (4), an authorized institution shall
allocate a risk-weight of 100% to an exposure to which this section applies.

(3) The Monetary Authority may, by notice in writing given to an authorized
institution, direct the institution to allocate to an exposure, or an exposure
belonging to a class of exposures, to which this section applies, a
risk-weight specified in the notice, being a risk-weight greater than 100%.

(4) An authorized institution given a notice under subsection (3) shall comply
with the notice.

(5) Where in respect of an on-balance sheet exposure of an authorized
institution, the institution has difficulty in allocating any accrued interest
under the exposure to the obligors of the institution, the institution may,
with the prior consent of the Monetary Authority, treat the accrued interest
as an exposure to which this section applies.