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Investor Presentaiton

MORGAN STANLEY BANK ASIA LIMITED NOTES TO THE FINANCIAL STATEMENTS Year ended 31 December 2020 28. b. ASSETS AND LIABILITIES MEASURED AT FAIR VALUE (CONTINUED) Transfers between Level 1 and Level 2 of the fair value hierarchy for financial assets and liabilities recognised at fair value on a recurring basis There were no transfers between Level 1 and Level 2 of the fair value hierarchy during the current year and prior year. C. Changes in Level 3 financial assets and liabilities recognised at fair value on a recurring basis There were no transfers between Level 2 and Level 3 of the fair value hierarchy during the current year and prior year. d. Assets and liabilities measured at fair value on a non-recurring basis Non-recurring fair value measurements of assets or liabilities are those which are required or permitted in the statement of financial position in particular circumstances. There were no assets or liabilities measured at fair value on a non-recurring basis during the current year and prior year. 29. ASSETS AND LIABILITIES NOT MEASURED AT FAIR VALUE For all financial instruments not measured at fair value, the carrying amount is considered to be a reasonable approximation of fair value. 30. CAPITAL MANAGEMENT The Morgan Stanley Group manages its capital on a global basis with consideration for its legal entities. The capital managed by the Morgan Stanley Group broadly includes ordinary share capital, preference share capital, subordinated loans and reserves. The Morgan Stanley Group manages its consolidated capital position based upon, among other things, business opportunities, risks, capital availability and rates of return together with internal capital policies, regulatory requirements and rating agency guidelines. In the future, the Morgan Stanley Group may adjust its capital base to in reaction to the changing needs of its businesses. The Company views capital as an important source of financial strength. It manages and monitors its capital in line with established policies and procedures and in compliance with local regulatory requirements. The Morgan Stanley Group also aims to adequately capitalise at a legal entity level whilst safeguarding that entity's ability to continue as a going concern and ensuring that it meets all regulatory capital requirements, so that it can continue to provide returns for the Morgan Stanley Group. In order to maintain or adjust the capital structure as described above, the Company may adjust the amount of dividends paid, return capital to shareholder, issue new shares, issue subordinated debt or sell assets to reduce debt. 55 55
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