CAPITAL / LIQUIDITY

Capital / Liquidity

China Banks Wrote Off Bad Debt Worth $146bn in 2018

By Editors | 01/02/2019

Write-offs are the quickest and most direct way to reduce NPL ratios and free up the supply of credit at commercial banks.

Capital / Liquidity

RBI Removes Three State Run Banks from PCA Framework

By Editors | 01/02/2019

India’s central bank has removed the Bank of India, Bank of Maharashtra and Oriental Bank of Commerce from lending restrictions under its prompt corrective action framework.

Capital / Liquidity

APRA Maintains Zero CCyB in Favour of Targeting Lending Standards

By Editors | 30/01/2019

APRA has maintained the countercyclical capital buffer rate at zero percent, focusing instead on targeted measures to improve eroded bank lending standards.

Capital / Liquidity

PBOC Perpetual Bond Support Seen as Banking System Bailout

By Manesh Samtani | 30/01/2019

China’s recent moves to help banks replenish capital through perpetual bond issuances are seen as a bailout of the banking system. But what happens in another crisis?

Capital / Liquidity

RBNZ Extends Bank Capital Consultation, Releases Background Research

By Editors | 29/01/2019

In response to stakeholder feedback on doubling bank capital requirements, the RBNZ has extended the consultation deadline and released research originally intended for internal use.

Big Picture

IMF Commends Hong Kong for Robust Financial Regulation and Supervision

By Editors | 28/01/2019

The IMF has assessed that robust financial regulation and supervision should help Hong Kong weather domestic and external shocks despite growing risks to the city’s outlook.

Capital / Liquidity

Negative Income Shock Could Wipe Out RBI Capital Reserves – Study

By Manesh Samtani | 28/01/2019

The core capital held by the RBI is “too low” and could compromise its ability to manage risks, respond to negative income shocks and maintain operational independence.

Capital / Liquidity

PBOC Enhances Liquidity Support for New Perpetual Bond Market

By Editors | 28/01/2019

Perpetual bonds can be swapped for central bank bills and serve as eligible collateral for PBOC lending. Bank of China issuance was more than 2x oversubscribed.

Big Picture

ISDA Lays Out CCP Best Practices Following Nasdaq Default

By Garima Chitkara | 25/01/2019

Clearinghouses should consider multiple risk factors in determining exposure and put more of its own capital on the line to manage defaults before dipping into the member default fund.