CAPITAL / LIQUIDITY

Capital / Liquidity

S. Korea Basel III Adoption is Credit Negative – Moody’s

By Editors | 17/04/2019

The reforms will lower the risk weights Korean banks use, resulting in reduced risk-weighted assets and freed-up capital, which will likely be used for new loans or to pay out dividends.

Market Infrastructure

Global Financial Market Integration Requires More Policy Work

By Manesh Samtani | 17/04/2019

Additional policy work is needed to level the playing field for internationally active entities, according to Financial Stability Institute chairman Fernando Restoy.

Market Infrastructure

FRTB May Disadvantage Emerging Markets – ISDA

By Manesh Samtani | 15/04/2019

There is a need for supervisors to consider local specificities when implementing the framework in less developed markets, ISDA says.

Capital / Liquidity

Federal Reserve Consults on New Rules for Foreign Banks in the US

By Editors | 11/04/2019

The proposals could relax capital and stress testing requirements for US branches of foreign banks, but impose stricter liquidity rules on those that engage in riskier activities.

Capital / Liquidity

BCBS Reorganises Standards in Consolidated “Basel Framework”

By Editors | 11/04/2019

The consolidated Basel Framework has been published initially in draft form, together with a consultative document on technical amendments to the standards.

Capital / Liquidity

RBI Defers Mandatory Pegging of Loan Rates to External Benchmarks

By Editors | 08/04/2019

The RBI has deferred a requirement for banks to link loan rates to external benchmarks, citing difficulties the change presents to banks’ interest rate risk management.

Capital / Liquidity

Fitch Warns of Downgrade Amid RBNZ Bank Capital Review

By Manesh Samtani | 08/04/2019

Fitch Ratings says its assessment of New Zealand’s largest banks could change if capital requirements become so onerous as to cause their Australian parents to divest.

Capital / Liquidity

China’s Henan Province Has an NPL Problem – Report

By Editors | 08/04/2019

Of Henan’s 93 commercial banks, 42 have high levels of nonperforming loans, a dozen of which reported an NPL ratio above 20%, ‘several’ as high as 40%.

Capital / Liquidity

Sectoral CCyB May be Useful Addition to Existing Tools – BCBS Paper

By Editors | 05/04/2019

Sectoral CCyBs increase banking system resilience at a lower cost than the Basel III CCyB, and can serve to reduce excessive credit growth and risks in targeted segments.