CAPITAL / LIQUIDITY

Capital / Liquidity

Chinese Officials Ask Banks to ‘Bear the Costs’ of Rising Bad Debt

By Editors | 21/06/2020

Chinese banks are asked to sacrifice 1.5tr yuan in 2020 profits to support businesses through lower lending rates and fees, loan repayment deferrals, and bad debt write-offs.

Capital / Liquidity

RBI Unveils Regulatory Framework for Housing Finance Companies

By Editors | 19/06/2020

The new framework introduces enhanced capital and liquidity requirements for HFCs, and restrictions on intra-group exposures, among other changes.

Capital / Liquidity

Bangladesh Defers End Date of Covid-19 Loan Classification Rules

By Editors | 19/06/2020

Banks should not change the classification of loans between 1 January and 30 September this year, even if borrowers fail to meet their scheduled repayment obligations.

Capital / Liquidity

Sri Lanka Cuts Statutory Reserve Ratio, Expands Lending Facility

By Duruthu E Chandrasekera | 17/06/2020

The CBSL has cut the statutory reserve ratio by 200 basis points, releasing $617mn in liquidity in the banking system. The size of its re-finance facility has also been tripled.

Capital / Liquidity

Bangladesh Relaxes Rules Prohibiting Bank Dividends

By Duruthu E Chandrasekera | 14/06/2020

Banks are allowed to distribute cash dividends to general shareholders and stock dividends to sponsors and institutional investors.

Capital / Liquidity

CBIRC Eases Loan Loss Provisioning Requirements – Report

By Editors | 10/06/2020

The CBIRC has reportedly told small and midsize banks they can reduce the amount of capital they need to set aside to cover potential losses from loan defaults.

Capital / Liquidity

RBI Proposes New Norms for Loan Sales and Securitisations

By Editors | 09/06/2020

The draft frameworks will make it easier for banks and other lenders to remove loans from their books amid increasing asset quality and liquidity pressures.

Capital / Liquidity

Radical Steps Needed from Vietnam Banking Sector

By Francois Denimal | 09/06/2020

Vietnam’s banking sector must take radical steps to adopt international capital rules, reporting requirements and trading practices, says Francois Denimal at FIS.

Capital / Liquidity

SFC Fines Potomac Capital for Breaching Financial Resources Rules

By Editors | 08/06/2020

Potomac misinterpreted the financial resources rules and incorrectly including aged fees receivables as liquid assets, leading to an overstatement of liquid capital.