Hong Kong Regulations

BANKING (CAPITAL) RULES - SECT 78

Approaches to use of recognized collateral

(1) Subject to subsection (2), an authorized institution may use the
simple approach or the comprehensive approach in its treatment of
recognized collateral for the purposes of calculating the risk-weighted 
amount of its exposures.

(2) An authorized institution shall—

   (a)  for exposures booked in the institution's banking book which are not
        past due exposures, use only the simple approach or only the
        comprehensive approach to the treatment of recognized collateral;

   (b)  for past due exposures booked in the institution's banking  book, use
        only the simple approach to the treatment of recognized  collateral;
        and

   (c)  for exposures booked in the institution's trading book, use only the
        comprehensive approach to the treatment of recognized collateral.