CAPITAL / LIQUIDITY

Capital / Liquidity

PBOC Perpetual Bond Support Seen as Banking System Bailout

By Manesh Samtani | 30/01/2019

China’s recent moves to help banks replenish capital through perpetual bond issuances are seen as a bailout of the banking system. But what happens in another crisis?

Capital / Liquidity

RBNZ Extends Bank Capital Consultation, Releases Background Research

By Editors | 29/01/2019

In response to stakeholder feedback on doubling bank capital requirements, the RBNZ has extended the consultation deadline and released research originally intended for internal use.

Big Picture

IMF Commends Hong Kong for Robust Financial Regulation and Supervision

By Editors | 28/01/2019

The IMF has assessed that robust financial regulation and supervision should help Hong Kong weather domestic and external shocks despite growing risks to the city’s outlook.

Capital / Liquidity

Negative Income Shock Could Wipe Out RBI Capital Reserves – Study

By Manesh Samtani | 28/01/2019

The core capital held by the RBI is “too low” and could compromise its ability to manage risks, respond to negative income shocks and maintain operational independence.

Capital / Liquidity

PBOC Enhances Liquidity Support for New Perpetual Bond Market

By Editors | 28/01/2019

Perpetual bonds can be swapped for central bank bills and serve as eligible collateral for PBOC lending. Bank of China issuance was more than 2x oversubscribed.

Big Picture

ISDA Lays Out CCP Best Practices Following Nasdaq Default

By Garima Chitkara | 25/01/2019

Clearinghouses should consider multiple risk factors in determining exposure and put more of its own capital on the line to manage defaults before dipping into the member default fund.

Capital / Liquidity

Philippine Central Bank Revises Computation of Banks’ Net Worth

By Editors | 23/01/2019

The Philippines has changed its rules for calculating bank capital to better reflect asset quality and align with computations used for capital adequacy.

Capital / Liquidity

Basel Regulators Consider 2020 Initial Margin Relief

By Manesh Samtani | 21/01/2019

Although it is still unclear which of the proposals will be adopted, the industry sees the data as so compelling that regulators will recognise the need for some form of relief.

Capital / Liquidity

RBNZ Bank Capital Proposal Excessive, Expensive, Unnecessary – UBS

By Editors | 21/01/2019

The RBNZ’s endeavours to strengthen the banks could come at a significant cost to the New Zealand economy, UBS has said in a research note.