CAPITAL / LIQUIDITY

Capital / Liquidity

RBI Defers Mandatory Pegging of Loan Rates to External Benchmarks

By Editors | 08/04/2019

The RBI has deferred a requirement for banks to link loan rates to external benchmarks, citing difficulties the change presents to banks’ interest rate risk management.

Capital / Liquidity

Fitch Warns of Downgrade Amid RBNZ Bank Capital Review

By Manesh Samtani | 08/04/2019

Fitch Ratings says its assessment of New Zealand’s largest banks could change if capital requirements become so onerous as to cause their Australian parents to divest.

Capital / Liquidity

China’s Henan Province Has an NPL Problem – Report

By Editors | 08/04/2019

Of Henan’s 93 commercial banks, 42 have high levels of nonperforming loans, a dozen of which reported an NPL ratio above 20%, ‘several’ as high as 40%.

Capital / Liquidity

Sectoral CCyB May be Useful Addition to Existing Tools – BCBS Paper

By Editors | 05/04/2019

Sectoral CCyBs increase banking system resilience at a lower cost than the Basel III CCyB, and can serve to reduce excessive credit growth and risks in targeted segments.

Capital / Liquidity

SFC Finalises Guidelines on Securities Margin Lending

By Editors | 05/04/2019

The guidelines will take effect in October, requiring brokers to limit margin lending to five times their capital, among other controls to reduce excessive leverage.

Capital / Liquidity

RBI to Draw Up New Guidance on Bad Debt Resolution

By Editors | 05/04/2019

The central bank will have to issue a revised circular for banks on bad debt resolution after a February 2018 circular was invalidated by the Supreme Court this week.

Market Infrastructure

Japan FSA Issues Proposal to Tighten Regional Bank Oversight

By Editors | 04/04/2019

The FSA will stress tests regional banks and force weaker lenders to take action to improve profitability, replace their management, or merge.

Capital / Liquidity

Malaysia Issues Draft Policy Framework for D-SIBs

By Editors | 04/04/2019

The draft policy framework sets out a proposed assessment methodology to identify D-SIBs in Malaysia and the applicable HLA and reporting requirements.

Capital / Liquidity

RBI Large Exposures Framework Takes Effect

By Editors | 04/04/2019

The RBI has issued a notice on its large exposures framework, which is now in effect, clarifying that non-cleared derivatives will be considered outside its remit for another year.