5.3.2 Regulation Addressed through Business Assumptions

The application supports multiple pre-configured assumptions based on HKMA specified scenario parameters. The list of pre-configured business assumptions and the corresponding reference to the regulatory requirement that it addresses is provided in the following section:

Table 4-8 Preconfigured HKMA LMR Business Assumptions

Sl. No.	Assumption Name	Assumption Description	Regulatory Requirement Addressed	Regulatory Reference 1. HKMA Banking (Liquidity) Rules Capital 155 Sub leg Q 2. BIS BCBS 238- Basel iii - LCR and Liquidity Risk Monitoring Tools
1	LMR - Asset Haircut Assignment	This assumption defines the haircuts applicable for Liquefiable Assets.	This set of assumptions defines the regulatory haircuts for the constituents of the Liquidity Maintenance Ratio.	Schedule 5, Table A
2	LMR - Liability Haircut Assignment	This assumption defines the haircuts applicable for Qualifying Liability.		Schedule 5 Table C and D