Investor Presentaiton
MORGAN STANLEY BANK ASIA LIMITED
NOTES TO THE FINANCIAL STATEMENTS
Year ended 31 December 2020
30.
CAPITAL MANAGEMENT (CONTINUED)
The Company is regulated by the HKMA and as such is subject to minimum capital requirements. The
Company's capital is monitored on an ongoing basis to ensure compliance with these requirements. At a
minimum, the Company must ensure that capital is greater than the capital requirement covering credit,
market and operational risk.
The Company complied with all of its regulatory capital requirements during the current and prior year.
The Company manages the following items as capital:
Share capital
FVOCI reserve
Retained earnings
2020
US$'000
2019
US$'000
670,000
670,000
35
1,330
354,042
222,395
1,024,077
893,725
The Company has earmarked part of its retained earnings for maintaining its regulatory reserve for
general banking risks to satisfy the provisions of the Banking Ordinance for prudential supervision
purposes. At 31 December 2020, US$17,154,000 (2019: US$27,703,000) in the retained earnings was
earmarked for this purpose.
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