6.4.1.1 Available Stable Funding
This section enlists all the preseeded assumptions acting on liabilities and capital items which receive an ASF factor.
Table 5-4 Preconfigured ASF Assumptions HKMA NSFR
| Sl. No. | Business Assumption Name | Business Assumption Description | Regulatory Requirement Addressed | Regulatory Reference: MA (BS) 26 |
|---|---|---|---|---|
| 1 | HKMA ASF-Capital Items, DTL and Minority Interest | [HKMA]: ASF - Tier 1 and tier 2 capital, Deferred tax liabilities and minority interest. | This assumption defines the long-term funding sources with an effective maturity of one year or more, primarily tier 1 and tier 2 capital instruments along with deferred tax liability and minority interest, which are assigned a 100% ASF factor for the NSFR computation. | Paragraphs 21 to 23 |
| 2 | HKMA ASF- Other Capital Instruments | [HKMA]: ASF - Other Capital Instruments that are not covered above. | This assumption defines the long-term funding sources with an effective maturity of one year or more, all the other capital instruments except tier 1 and tier 2 capital instruments along with deferred tax liability and minority interest, which are assigned a 100% ASF factor for the NSFR computation. | Paragraphs 21 to 23 |
| 3 | HKMA ASF- Stable Retail Deposits | [HKMA]: ASF - Stable and highly stable deposits as defined in the LCR from customers treated as retail. | The ASF factors applicable to the stable portion of deposits, from retail customers and SMEs treated like retail customers for the purposes of LCR are predefined as part of this assumption. This assumption applies a 95% ASF factor on the stable portion of the retail deposits. | Paragraphs 25 to 27 |
| 4 | HKMA ASF- Stable Retail Deposits - Cash Flow Basis | [HKMA]: ASF - Stable and highly stable deposits as defined in the LCR from customers treated as retail with a remaining maturity of more than 1 yr. and cash flow maturity of less than 1 year. | The ASF factors applicable to the stable portion of deposits, from retail customers and SMEs treated like retail customers for the purposes of LCR, with a remaining maturity of more than 1 year with cash flow maturities within 1 year and greater than 1 year, are predefined as part of this assumption. This assumption applies a 95% ASF factor on the stable portion of cash flows with cash flow maturity within 1 year and 1 year or more. | Paragraphs 25 to 27 |
| 5 | HKMA ASF- Less Stable Retail Deposits | [HKMA]: ASF - Less stable deposits as defined in the LCR from customers treated as retail with a remaining maturity of more than 1 yr. and cash flow maturity of less than 1 year. | The ASF factors applicable to the less stable portion of deposits, from retail customers and SMEs treated like retail customers for the purposes of LCR, are predefined as part of this assumption. This assumption applies a 90% ASF factor on the less stable portion of retail deposits. | Paragraphs 25 to 27 |
| 6 | HKMA ASF-Less Stable Retail Deposits- Cash Flow Basis | [HKMA]: ASF - Less stable deposits as defined in the LCR from customers treated as retail with a remaining maturity of more than 1 yr. and cash flow maturity of less than 1 year. | The ASF factors applicable to the less stable portion of deposits from retail customers and SMEs treated like retail customers for the purposes of LCR, with a remaining maturity of more than 1 year with cash flow maturity within 1 year and greater than 1 year, are predefined as part of this assumption. This assumption applies a 90% ASF factor on the stable portion of cash flows with cash flow maturity of less than 1 year and cash flow maturity of 1 year or more. | Paragraphs 25 to 27 |
| 7 | HKMA ASF- Other Funds from Retail | [HKMA]: ASF - Other funding from customers treated as retail with a residual maturity of less than 1 year. | The ASF factors applicable to the funding other than deposits, from customers who are treated as retail for the purposes of LCR, are predefined as part of this assumption. This assumption applies a 0% ASF factor on the funding with a remaining maturity of fewer than 6 months and 50% on the funding with a remaining maturity between 6 months to 1 year and 100% on the funding with a remaining maturity of 1 year or more. | Paragraphs 33 to 34 |
| 8 | HKMA ASF- Other Funds from Retail - Maturity over 1yr | [HKMA]: ASF - Other funding from customers treated as retail with an account residual maturity of more than 1 year. | The ASF factors applicable to the funding other than deposits, from customers who are treated as retail for the purposes of LCR, with a remaining maturity of more than 1 year with cash flow maturity within 1 year and greater than 1 year, are predefined as part of this assumption. This assumption applies a 0% ASF factor on cash flows with maturity less than 6 months and a 50% to cash flows with maturity between 6 months to 1 year and a 100% ASF factor on cash flows with the maturity of 1 year or more. | Paragraphs 33 to 34 |
| 9 | HKMA ASF- Operational Deposit - Maturity within 1yr | [HKMA]: ASF - the operational portion of operational deposits, generated by clearing, custody, and cash management activities, with a remaining maturity of less than 1 year. | The ASF factor applicable to the balance held in operational accounts to fulfill operational requirements is predefined as part of this assumption. This assumption applies a 50% ASF factor on the operational balances with a remaining maturity of less than 1 year. | Paragraphs 29, 30, 31 |
| 10 | HKMA ASF- Non Op Portion of Op Dep - SME - Maturity in 1yr | [HKMA]: ASF - non-operational wholesale funding, from SMEs AoP, Trusts, partnerships, and HUFs not treated as retail, with remaining maturity less than 1 year. | The ASF factor on the non-operational portion of operational accounts, from small and medium enterprises, the association of persons, trusts, partnerships, and Hindu undivided families not treated as retail, with a remaining maturity of less than 1 year are predefined as part of this assumption. This assumption applies a 0% ASF factor on non-operational balances of operational accounts with a remaining maturity of less than 1 year. | Paragraphs 29, 30, 31 |
| 11 | HKMA ASF- Non Operational Deposit - SME | [HKMA]: ASF - non-operational wholesale funding, from SMEs AoP, Trusts, partnerships, and HUFs not treated as retail. | The ASF factor on non-operational wholesale funding, from small and medium enterprises, association of persons, trusts, partnerships, and Hindu undivided families not treated as retail, are predefined as part of this assumption. This assumption applies a 50% ASF factor on non-operational funding with a remaining maturity of fewer than 6 months and between 6 months to 1 year. It applies a 100% ASF factor on non-operational funding with a remaining maturity of 1 year or more | Paragraphs 29, 30, 31 |
| 12 | HKMA ASF- Non Operational Deposit - SME - Cash flow basis | [HKMA]: ASF - non-operational wholesale funding, from SMEs AoP, Trusts, partnerships, and HUFs not treated as retail, with remaining maturity greater than 1 year and where the cash flows are occurring within 1 year. | The ASF factor applicable to non-operational cash flows, from SMEs AoP, Trusts, partnerships, and HUFs not treated as retail, with a remaining maturity of greater than 1 year with cash flow maturity within 1 year and greater than 1 year, are predefined as part of this assumption. This assumption applies a 50% ASF factor on non-operational cash flows with cash flow maturity of fewer than 6 months and between 6 months to 1 year. It applies a 100% ASF factor on non-operational cash flows with cash flow maturity of 1 year or more. | Paragraphs 29, 30, 31 |
| 13 | HKMA ASF- Non Op Portion of Op Dep-CB PSE MDB NDB-Mat in 1yr | [HKMA]: ASF - the non-operational portion of operational deposits, from Central banks, PSE, MDB, NDB, generated by clearing, custody, and cash management activities, with a remaining maturity of less than 1 year. | The ASF factor applicable to the non-operational portion of operational accounts from central banks, Public Sector Entity (PSE), Multilateral Development Bank (MDB), National Development Bank (NDB), with a remaining maturity of less than 1 year, are predefined as part of this assumption. This assumption applies a 0% ASF factor on the non-operational portion of operational accounts from central banks with a remaining maturity of less than 1 year and a 50% ASF factor on the non-operational portion of operational accounts from central banks, PSE, MDB, and NDB with a remaining maturity of less than 1 year. | Paragraphs 29, 30, 31, 32, 33 |
| 14 | HKMA ASF- Non Operation Funds-CB PSE MDB NDB-Cash Flow Basis | [HKMA]: ASF - non-operational funding, from Central banks, financial institutions (banks) PSE, MDB, NDB, with remaining maturity greater than 1 year. | The ASF factor applicable to non-operational cash flows from central banks, PSE, MDB, NDB, with a remaining maturity of greater than 1 year with cash flow maturity within 1 year and greater than 1 year, are predefined as part of this assumption. This assumption applies a 0% ASF factor on non-operational cash flows from central banks with cash flow maturity of fewer than 6 months, a 50% ASF factor for cash flow maturity between 6 months to 1 year, a 50% ASF factor on non-operational cash flows from PSE, MDB, and NDB with cash flow maturity of less than 1 year and a 100% ASF factor on non-operational cash flows from PSE, MDB, and NDB with cash flow maturity of 1 year or more. | Paragraphs 29, 30, 31, 32, 33 |
| 15 | HKMA ASF- Non op funds from CB PSE MDB NDB | [HKMA]: ASF - non-operational funding, from Central banks, financial institutions (banks) PSE, MDB, NDB, with remaining maturity less than 1 year. | The ASF factor on non-operational funding from central banks, PSE, MDB, NDB, are predefined as part of this assumption. This assumption applies a 0% ASF factor on non-operational funding from central banks with a remaining maturity of fewer than 6 months, a 50% ASF factor for non-operational funding from PSE, MDB, and NDB between 6 months to 1 year and 100% ASF factor on non-operational funding from PSE, MDB, and NDB with a remaining maturity of 1 year or more. | Paragraphs 29, 30, 31, 32, 33 |
| 16 | HKMA ASF- Non Op Portion of Op Dep - Corp - Maturity in 1yr | [HKMA]: ASF - the non-operational portion of operational deposits, from financial and non-financial corporates, generated by clearing, custody, and cash management activities, with a remaining maturity of less than 1 year. | The ASF factor applicable to the non-operational portion of operational accounts from financial and non-financial corporates, with a remaining maturity of less than 1 year, are predefined as part of this assumption. This assumption applies a 0% ASF factor on the non-operational portion of operational accounts from financial corporates with a remaining maturity of less than 1 year and a 50% ASF factor on the non-operational portion of operational accounts from non-financial corporates with a remaining maturity of less than 1 year. | Paragraph 31 |
| 17 | HKMA ASF- Non Operational Funds - Corp - Cash Flow Basis | [HKMA]: ASF - non-operational funding, from financial and non-financial corporates, with remaining maturity greater than 1 year and where the cash flows are occurring within 1 year. | The ASF factor applicable to non-operational cash flows from financial and non-financial corporates, with a remaining maturity of greater than 1 year with cash flow maturity within 1 year and greater than 1 year, are predefined as part of this assumption. This assumption applies a 50% ASF factor on non-operational cash flows from non-financial corporates with cash flow maturity of fewer than 6 months and between 6 months to 1 year. The assumptions apply a 0% ASF factor on non-operational cash flows from financial corporates with cash flow maturity of fewer than 6 months and a 50% ASF factor on non-operational cash flows from financial corporates with cash flow maturity between 6 months to 1 year and a 100% ASF factor on non-operational cash flows from financial corporates with cash flow maturity of 1 year or more. | Paragraph 31 |
| 18 | HKMA ASF- Non Operational Funds - Corp | [HKMA]: ASF - non-operational funding, from financial and non-financial corporates, with remaining maturity less than 1 year. | The ASF factor on non-operational funding from financial and non-financial corporates are predefined as part of this assumption. This assumption applies a 0% ASF factor on non-operational funding from financial corporates with a remaining maturity of fewer than 6 months and a 50% ASF factor for non-operational funding from financial corporates with a remaining maturity between 6 months to 1 year. The assumptions also apply a 50% ASF factor on non-operational funding from non-financial corporates with a remaining maturity of fewer than 6 months, between 6 months to 1 year, and a 50% ASF factor on non-operational funding from non-financial corporates with a remaining maturity of 1 year or more. | Paragraph 31 |
| 19 | HKMA ASF- Non Op Portion of Op Dep- Othr Parties -Mat in 1yr | [HKMA]: ASF - the non-operational portion of operational deposits, from all except retail, SME, AoP, Trusts, partnerships, HUF, corporates, banks, central banks, sovereign, PSE, MDB and NDB, generated by clearing, custody, and cash management activities, with a remaining maturity of less than 1 year. | The ASF factor applicable to the non-operational portion of operational accounts from all except retail, SME, AoP, Trusts, partnerships, HUF, corporates, banks, central banks, sovereign, PSE, MDB, and NDB, with remaining maturity less than 1 year, are predefined as part of this assumption. This assumption applies a 0% ASF factor on the non-operational portion of operational accounts from all except retail, SME, AoP, Trusts, partnerships, HUF, corporates, banks, central banks, and sovereign, PSE, MDB and NDB with a remaining maturity of less than 1 year. | Paragraph 33 |
| 20 | HKMA ASF- Non Operational Funds -Other Legal Entities | [HKMA]: ASF - non-operational funding, from all the financial institutions and government-sponsored entities that are not covered above. | The ASF factor applicable to non-operational funding, from the financial institutions and government-sponsored entities that are not covered above, with remaining maturity less than 1 year are predefined as part of this assumption. This assumption applies a 0% ASF factor and a 50% ASF factor on non-operational funding from the financial institutions and government-sponsored entities that are not covered above, with a remaining maturity of fewer than 6 months and between 6 months to 1 year respectively. It applies a 100% ASF factor on non-operational funding from the financial institutions and government-sponsored entities that are not covered above, with a remaining maturity of 1 year or more. | Paragraph 33 |
| 21 | HKMA ASF- Non Operational Funds -Other Parties | [HKMA]: ASF - non-operational funding, from all except retail, SME, AoP, Trusts, partnerships, HUF, corporates, banks, central banks, sovereign, PSE, MDB, and NDB. | The ASF factor applicable to non-operational funding, from all except retail, SME, AoP, Trusts, partnerships, HUF, corporates, banks, central banks, sovereign, PSE, MDB, and NDB, with remaining maturity less than 1 year are predefined as part of this assumption. This assumption applies a 0% ASF factor and a 50% ASF factor on non-operational funding from all except retail, SME, AoP, Trusts, partnerships, HUF, corporates, banks, central banks, sovereign, PSE, MDB and NDB with a remaining maturity of fewer than 6 months and between 6 months to 1 year respectively. It applies a 100% ASF factor on non-operational funding from all except retail, SME, AoP, Trusts, partnerships, HUF, corporates, banks, central banks, sovereign, PSE, MDB and NDB with a remaining maturity of 1 year or more. | Paragraph 33 |
| 22 | HKMA ASF- Non Op Funds -Other Legal entities-Cash flow basis | [HKMA]: ASF - non-operational funding, from all the financial institutions and government-sponsored entities that are not covered above, with remaining maturity greater than 1 year and where the cash flows are occurring within 1 year. | The ASF factor applicable to non-operational cash flows, from all the financial institutions and government-sponsored entities that are not covered above, with remaining maturity greater than 1 year with cash flow maturity within 1 year and greater than 1 year, are predefined as part of this assumption. This assumption applies a 0% ASF factor and 50% ASF factor on non-operational cash flows from all the financial institutions and government-sponsored entities that are not covered above, with cash flow maturity of fewer than 6 months and between 6 months to 1 year respectively. It applies a 100 % ASF factor on non-operational cash flows from all the financial institutions and government-sponsored entities that are not covered above, with cash flow maturity of 1 year or more. | Paragraph 33 |
| 23 | HKMA ASF- Non Op Funds -Other Parties -Cash flow basis | [HKMA]: ASF - non-operational funding, from all except retail, SME, AoP, Trusts, partnerships, HUF, corporates, banks, central banks, sovereign, PSE, MDB, and NDB, with remaining maturity greater than 1 year and where the cash flows are occurring within 1 year. | The ASF factor applicable to non-operational cash flows, from all except retail, SME, AoP, Trusts, partnerships, HUF, corporates, banks, central banks, sovereign, PSE, MDB, and NDB, with remaining maturity greater than 1 year with cash flow maturity within 1 year and greater than 1 year, are predefined as part of this assumption. This assumption applies a 0% ASF factor and 50% ASF factor on non-operational cash flows from all except retail, SME, AoP, Trusts, partnerships, HUF, corporates, banks, central banks, sovereign, PSE, MDB and NDB with cash flow maturity of fewer than 6 months and between 6 months to 1 year respectively. It applies a 100 % ASF factor on non-operational cash flows from all except retail, SME, AoP, Trusts, partnerships, HUF, corporates, banks, central banks, and sovereign, PSE, MDB and NDB with cash flow maturity of 1 year or more. | Paragraph 33 |
| 24 | HKMA ASF- Trade Date Payables | [HKMA]: ASF - Trade date payables arising from purchases of foreign currencies, financial instruments, and commodities that are expected to settle or have failed but are expected to settle within the standard settlement cycle. | The ASF factor applicable to trade payable cash flows arising from purchases of foreign currencies, financial instruments, and commodities expected to settle within the standard settlement cycle, are predefined in this assumption. This assumption applies a 0% ASF factor on the trade payable cash flows. | Paragraph 41 |
| 25 | HKMA ASF- Liabilities with Open Maturity | [HKMA]: ASF - Secured deposits and all other borrowings and which do not have a stated maturity. | The ASF factor applicable to all the other funding without any stated maturity is predefined in this assumption. This assumption applies a 0% ASF factor on all the funding without any maturity. | Paragraph 42 |
| 26 | HKMA ASF- Liabilities - Maturity over 1yr | [HKMA]: ASF - Borrowings and liabilities with residual maturities and cash flow falling beyond 1 year. | The ASF factors applicable to all other funding with a remaining maturity of greater than 1 year with cash flow maturity within 1 year, are predefined in this assumption. This assumption applies a 0% ASF factor on the cash flows. | Paragraph 42 |
| 27 | HKMA ASF- Debt Securities Issued | [HKMA]: ASF - Debt securities and prescribed instruments issued by the institution. | The ASF factor applicable to debt securities and prescribed instruments issued by the institution are predefined in this assumption. This assumption applies a 0% and 50% ASF factor on debt securities, with residual maturity of fewer than 6 months and between 6 months to 1 year respectively. It applies a 100% ASF factor on debt securities with open maturity and maturity of 1 year or more. | Paragraph 24 |
| 28 | HKMA ASF- Foreign Branch loss | [HKMA]: ASF- it covers the overseas-incorporated institution, the earnings of its Hong Kong branch | The ASF factor on the overseas-incorporated institution and the earnings of its Hong Kong branch, are predefined as part of this assumption. This assumption applies a 0% ASF for remaining maturity of fewer than 6 months, a 50% ASF factor for remaining maturity between 6 months to 1 year and a 100% ASF factor for remaining maturity of 1 year or more . The assumptions also apply a 100% ASF factor for open maturity products. | Paragraph 57, 58, and 59 |
| 29 | HKMA ASF- Other Liabilities | [HKMA]: ASF- ASF- Other Liabilities not covered by other reporting lines | The ASF factor on other Liabilities not covered by other reporting lines, are predefined as part of this assumption. This assumption applies a 0% ASF across the maturities | Paragraph 42 |