| Journal Call no. | HG1302.Q37 |
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| Article Title | Bilateral netting under the capital adequacy framework / Banking Policy Department. |
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| Is Part Of | Quarterly bulletin / Hong Kong Monetary Authority ; no.3, May 1995, p.27-30. |
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| Abstract | The Hong Kong Monetary Authority (HKMA) has revised its capital adequacy framework to bring it in line with the amendment to the Capital Accord made by the Basle Committee in July 1994 that broadens the recognition of bilateral netting for capital adequacy purposes. This article sets out the legal position on netting under Hong Kong law, the conditions under which the HKMA will be prepared to recognise netting arrangements and the method of calculating the credit exposures on bilaterally netted transactions for capital adequacy purposes. |
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