Hong Kong Regulations

BANKING (DISCLOSURE) RULES - SECT 37

Provisions supplementary to section 36

(1) For the purposes of section 36(4)(b)(i) and (ii), an authorized
institution shall (whether or not its accounting practices include the
recording of recoveries and write-offs through the provision for impaired
loans and receivables) ensure that—

   (a)  the amount of new provisions includes any amount of loans and 
        receivables directly written off through the profit or loss in the
        annual  reporting period;

   (b)  the amount of provisions released back includes any amount of
        loans and receivables recovered directly through the profit or loss in
        the annual reporting period; and

   (c)  the net amount of the amount of new provisions referred to in
        paragraph (a) and the amount of provisions released back referred to
        in paragraph (b) is consistent with the amount of provisions disclosed
        in the profit and loss information referred to in section 35(1).

(2) For the purposes of section 36, an authorized institution shall
disclose—

   (a)  the amount of impaired loans and advances to customers which are
        individually determined to be impaired;

   (b)  the amount of specific provisions made for such loans and advances;

   (c)  the value of collateral which has been taken into account in respect
        of such loans and advances to which the specific provisions relate;
        and

   (d)  the percentage of such loans and advances to its total amount of loans
        and advances to customers.

(3) For the purposes of section 36, an authorized institution shall
disclose—

   (a)  the amount of impaired loans and advances to banks which are
        individually determined to be impaired;

   (b)  the amount of specific provisions made for such loans and advances;

   (c)  the value of collateral which has been taken into account in respect
        of such loans and advances to which the specific provisions relate;
        and

   (d)  the percentage of such loans and advances to its total amount of
        loans and advances to banks.

(4) For the purposes of section 36, an authorized institution shall—

   (a)  subject to paragraph (b), disclose a breakdown of investments in
        securities (including treasury bills) into equity and debt  securities
        and listed and unlisted securities;

   (b)  ensure that the breakdown required by paragraph (a) is carried out
        separately for held-to-maturity securities, available-for-sale
        securities and securities designated at fair value through profit or
        loss; and

   (c)  disclose the total fair value of listed securities, broken down into
        the securities groupings set out in paragraph (b).

(5) For the purposes of section 36, an authorized institution shall disclose
separately a breakdown of the issuers of held-to-maturity securities,
available-for-sale securities and securities designated at fair value through
profit or loss into—

   (a)  sovereigns;

   (b)  public sector entities;

   (c)  banks;

   (d)  corporates; and

   (e)  others.

(6) Subject to subsections (7) and (8), an authorized institution shall
disclose a breakdown of the residual contractual maturity of its assets and
liabilities into those which are repayable—

   (a)  on demand;

   (b)  within a period of not more than one month (except those repayable on
        demand);

   (c)  within a period of more than one month but not more than 3 months;

   (d)  within a period of more than 3 months but not more than one year;

   (e)  within a period of more than one year but not more than 5 years;

   (f)  within a period of more than 5 years; and

   (g)  within an indefinite period.

(7) An authorized institution shall disclose a breakdown of its assets and
liabilities referred to in subsection (6) into—

   (a)  for its assets—

        (i)    loans and advances to customers;

        (ii)   cash and balances with banks and placements with banks

(including loans and advances to banks);

        (iii)  certificates of deposit held;

        (iv)   debt securities held, which are measured at fair value through
               profit or loss, showing separately those— (A) designated as
               such upon initial recognition; and (B) classified as held for
               trading;

        (v)    available-for-sale debt securities; and (L.N. 268 of 2006)

        (vi)   held-to-maturity debt securities; and (L.N. 268 of 2006)

   (b)  for its liabilities—

        (i)    deposits and balances from banks;

        (ii)   deposits from customers;

        (iii)  certificates of deposit issued; and

        (iv)   issued debt securities.

(8) An authorized institution shall base the breakdown referred to in
subsection (6) on the remaining period to the contractual maturity date of the
asset or liability concerned.

(9) For the purposes of section 36, an authorized institution shall—

   (a)  disclose a breakdown of the gross amount (before accumulated
        depreciation) of property, plant and equipment, and investment
        properties into those included at cost and those included at
        valuation, if any;

   (b)  in the case of fixed assets which have been included at valuation,
        disclose the years in which those assets were valued and the values;
        and

   (c)  in the case of assets which have been valued during the annual 
        reporting period, disclose—

        (i)    the names of the persons who valued them and particulars of
               their qualifications for doing so; and

        (ii)   the bases of valuation used by such persons.

(10) For the purposes of section 36, an authorized institution shall—

   (a)  subject to paragraph (b), disclose a breakdown of real property, being
        real property included in the property, plant and equipment, or in the
        investment properties, of the institution, into that held freehold and
        that held on a lease (broken down into long lease, medium-term lease
        and short lease);

   (b)  ensure the breakdown referred to in paragraph (a) distinguishes
        between properties held on lease in Hong Kong and properties held on
        lease outside Hong Kong.

(11) For the purposes of section 36, an authorized institution shall disclose
particulars of the movements in reserves during the annual  reporting period,
including the surplus or deficit on the revaluation of property.