CAPITAL / LIQUIDITY

Capital / Liquidity

Bank of Japan Warns of Rising Credit Costs

By Garima Chitkara | 23/04/2018

Banks are urged to step up credit risk management and provisioning for lending to “middle-risk” firms that hold low internal funds.

Capital / Liquidity

Bangladesh Mulls New NPL Dispute Resolution Guidelines

By Garima Chitkara | 23/04/2018

New guidelines and amendments to stress the importance of mediation and arbitration to take pressure off the courts saddled with NPL recovery cases.

Capital / Liquidity

China Cuts Reserve Requirements for Banks

By Editors | 20/04/2018

Banks must use majority of cash freed up from 1% RRR cut to repay central bank loans; the rest can be used for small business loans.

Capital / Liquidity

India Sets Floor for Foreign Investment into Unregulated Financial Entities

By Garima Chitkara | 19/04/2018

Minimum foreign investment into fund-based services by unregulated entities to be set at $20 million; $2 million for non-fund based services.

Big Picture

Indonesian Banks Receive Moody’s Upgrades

By Editors | 18/04/2018

Last week’s sovereign rating upgrade reflects the Indonesian government’s capacity to provide support in times of stress, particularly for systemically important institutions.

Capital / Liquidity

Financial System Resilient but Concerns Remain – RBA

By JP Reimann | 17/04/2018

Australia’s Financial Stability Review says risks easing, financial system resilient; but dangers remain on household debt, weak risk control and poor culture at banks.

Capital / Liquidity

Indian Banks Face “Serious Governance and Risk Issues” – S&P

By Garima Chitkara | 16/04/2018

In light of recent NPA and governance issues at large private banks in India, S&P says Indian banks need an overhaul to enhance risk culture and governance.

Capital / Liquidity

China Restricts Borrowings, Suspends OTC Options to Curb Brokerage Risks

By JP Reimann | 16/04/2018

Central bank will cap outstanding balances of short-term financing tools at 60% of a brokerage’s net capital; cap to be adjusted every six months based on brokers’ liquidity profiles.

Capital / Liquidity

Japan, China Urge EU Regulators to Relax Foreign D-SIB Rules

By Manesh Samtani | 16/04/2018

Joint letter from Japan, China banking associations say €30bn IPU threshold will make provision of financial services in the EU unsustainable for member banks.