Capital / Liquidity

Capital / Liquidity

Decisions on Exiting Regulatory Relief Present Financial Stability Risk

By Manesh Samtani | 11/08/2020

As long as regulatory relief measures remain in the prudential framework, credit risks will continue to mount on bank balance sheets, presenting risks to financial stability.

Capital / Liquidity

BSP Expects Sound Borrower Assessments, Forbearance Reporting

By Editors | 10/08/2020

Requirements to report forbearance granted to borrowers will ensure industry statistics reflect the “true health of the banking system” and incentivise prudence in banks’ credit decisions.

Capital / Liquidity

APRA to Recommence Policy Work, Licensing Activity

By Editors | 10/08/2020

APRA will recommence public consultations on high-priority prudential policy reforms, and begin accepting new licence applications in September.

Capital / Liquidity

MAS Calls on Finance Companies to Moderate Dividends

By Editors | 08/08/2020

The dividend restriction is a pre-emptive measure to bolster the finance companies’ ability to continue to support the credit needs of businesses and consumers.

Capital / Liquidity

RBI Adopts New Measures to Ease Covid-19 Financial Stress

By Editors | 06/08/2020

A new resolution framework will allow banks to continue to maintain the ‘standard’ classification for corporate borrowers in resolution rather than downgrade the account, among other measures.

Capital / Liquidity

PBOC to Authorise Bankruptcy Filing of Baoshang Bank

By Editors | 06/08/2020

The decision was made based on “severe insolvency” found at Baoshang Bank. The last commercial bank allowed to go bankrupt in China was in 2001.

Capital / Liquidity

MAS Asks Singapore-headquartered Banks to Cap Dividends

By Editors | 29/07/2020

Locally-headquartered banks are asked to cap fiscal 2020 dividends as a pre-emptive measure to ensure sustained lending given “significant uncertainties” ahead.

Capital / Liquidity

APRA Moderates Approach to Bank Dividends in New Guidance

By Editors | 29/07/2020

Banks should retain at least half of their earnings when making capital distribution decisions, which should be informed by regular stress testing to demonstrate ongoing lending capacity.

Capital / Liquidity

China Prepares to Bail Out State-owned Enterprises, Banks

By Editors | 27/07/2020

State-owned China Reform Holdings has set up a bailout fund to help ensure SOEs can avoid bond defaults. Meanwhile, 18 provincial governments have approval to inject capital into banks.