Capital / Liquidity

China to Lower Bad Loan Provisioning Requirements

23/04/2020

China will reduce the amount of capital small and medium-sized banks need to set aside to cover potential losses from loan defaults.

S. Korea Adds $60bn to Coronavirus Response Spending

22/04/2020

40tr won will go towards supporting key industries through loans, payment guarantees and investments. 35tr won will go to small merchants, P-CBO issuance and short-term debt purchases.

AML / KYC

ASIFMA Offers Hong Kong Guidance on Common KYC Practices

22/04/2020

The guidance on account opening and KYC refresh is based on practices employed at 15 banks in Hong Kong that have a strong global and regional footprint.

Market Infrastructure

ARRC Sets Out 2020 Objectives for LIBOR to SOFR Switch

22/04/2020

The ARRC will establish final recommended conventions for SOFR-based floating rate notes, business loans, and securitisations by 31 July.

Capital / Liquidity

RBNZ Proposes Removal of Mortgage Lending Restrictions

22/04/2020

The RBNZ intends to remove existing LVR restrictions for a period of one year, to help banks to keep lending to support customers, including with mortgage deferrals.

Enforcement

FSS Prompts JP Morgan Securities Seoul to Enhance Internal Controls

22/04/2020

South Korea’s FSS has reportedly instructed the Seoul branch of JP Morgan Securities to strengthen its internal controls on inter-subsidiary relations.

Capital / Liquidity

BOJ Flags Financial Stability Risks from High Credit Costs, Investment Losses

22/04/2020

The BOJ has identified three main risks to the stability of the Japanese financial system – rising credit costs, investment losses and foreign currency funding risks.

Capital / Liquidity

ECB Officials Push for ‘Bad Bank’ to Clean Up NPLs – Report

21/04/2020

ECB officials are concerned that the coronavirus pandemic will trigger a surge in NPLs that could hamper banks’ ability to lend.

Enforcement

Singapore Police Open Probe into Renowned Oil Trader

21/04/2020

Hin Leong Trading’s founder admitted to concealing $800mn in losses from oil futures. The firm now unpaid debts of $3.85bn. Up to 23 banks are affected.