CAPITAL / LIQUIDITY

Capital / Liquidity

Climate Stress Tests Will Inform Supervisory Discussions

By Manesh Samtani | 17/07/2021

Climate stress test exercises will likely become the basis of supervisory discussions regarding bank business models, internal governance and risk management.

Capital / Liquidity

RBI Proposes Changes to UCB Fundraising Norms

By Ranamita Chakraborty | 15/07/2021

Primary UCBs can issue equity shares, perpetual or redeemable preference shares, perpetual debt instruments, and long-term subordinated bonds.

Capital / Liquidity

APRA Proposes Banks Maintain Higher Self-securitised Assets

By Editors | 15/07/2021

APRA proposes that banks maintain at least 30 percent of their LCR Net Cash Outflows in self-securitised assets, separate from that used as collateral for the CLF.

Capital / Liquidity

New Standard Published to Assess Islamic Deposit Insurance Systems

By Editors | 14/07/2021

The IADI and IFSB have developed a set of core principles that can be used to develop and assess the effectiveness of Islamic deposit insurance systems.

Big Picture

FSB Takes Stock of Covid-19 Lessons on Financial Stability

By Manesh Samtani | 13/07/2021

Covid-19 may yet test the resilience of the global financial system, as lenders could still face additional losses as support measures are unwound, the FSB warns.

Capital / Liquidity

FSC Korea Designates D-SIBs, Non-holding Financial Groups

By Manesh Samtani | 13/07/2021

The FSC has designated five bank holding companies and five banks as D-SIBs. Six conglomerates were designated as non-holding financial groups.

Capital / Liquidity

PBOC Cuts Reserve Requirement to Boost Bank Lending Capacity

By Manesh Samtani | 12/07/2021

Market participants say that the earlier-than-expected RRR cut reflects policymakers’ concerns that banks may be under stress and facing higher NPLs.

Capital / Liquidity

‘Noisy’ Stress Tests Can Promote Risky Bank Behaviour

By Manesh Samtani | 11/07/2021

When supervisory stress tests are less accurate, capital surcharges and disclosure of outcomes can amplify risk-taking by banks, says a BIS working paper.

Capital / Liquidity

MAS to Advise Banks on Dividend Restrictions ‘Very Shortly’

By Ranamita Chakraborty | 05/07/2021

MAS is conducting stress tests on local banks to assess whether it is necessary to extend existing restrictions on dividend payments.