Hong Kong Regulations

BANKING (DISCLOSURE) RULES - SECT 39

Off-balance sheet exposures (other than derivative transactions)

(1) Subject to subsection (2), an authorized institution shall disclose the
contractual or notional amounts of each material class of its off-balance
sheet exposures.

(2) Without prejudice to the generality of subsection (1), an authorized
institution shall disclose the contractual or notional amount of its
off-balance sheet exposures which are—

   (a)  direct credit substitutes;

   (b)  transaction-related contingencies;

   (c)  trade-related contingencies;

   (d)  note issuance and revolving underwriting facilities;

   (e)  forward asset purchases, amounts owing on partly paid-up shares and
        securities, forward forward deposits placed and asset sales with
        recourse; or

   (f)  other commitments which do not fall within any of the classes of
        off-balance sheet exposures specified in paragraphs (a), (b), (c), (d)
        and (e), broken down into—

        (i)    commitments which have an original maturity of not more than
               one year;

        (ii)   commitments which have an original maturity of more than one
               year; and

        (iii)  commitments which may be cancelled at any time unconditionally
               by the institution or which provide for automatic cancellation
               due to a deterioration in the creditworthiness of the persons
               to whom the institution has made the commitments.

(3) Subject to subsection (4), an authorized institution shall disclose such
risk exposure information as is necessary for understanding the underlying
risks of the off-balance sheet exposures incurred by the institution.

(4) Without prejudice to the generality of subsection (3), an authorized
institution shall disclose the total risk-weighted amount for credit risk of
its off-balance sheet exposures, if any.

(5) In this section—

"original maturity" (原訂到期期限), in relation to an off-balance sheet
exposure of an authorized institution, means the period between the date on
which the exposure is entered into by the institution and the earliest date on
which the institution can, at its option, unconditionally cancel the exposure.
original maturity" (原訂到期期限)