Capital / Liquidity

Big Picture

Taken Too Far, Banking Policy Relaxations Could Backfire

By Manesh Samtani | 16/04/2020

In a new paper, the BIS’s Fernando Restoy and Claudio Borio offer three important principles to guide the assessment of Covid-19 related policy adjustments.

Capital / Liquidity

S. Korean Regulators Urge Flexible ECL Approach During Covid-19

By Editors | 13/04/2020

South Korean regulators are advising companies and auditors to consider government relief measures as risk-reducing when determining expected credit losses.

Capital / Liquidity

Bangladesh Bank Frees Up Additional Bank Lending Capacity

By Editors | 13/04/2020

Bangladesh Bank has increased lending and investment limits for conventional and Shariah banks, respectively, and further lowered the cash reserve requirement and repo rate.

Capital / Liquidity

HKMA Reduces AIs’ Regulatory Reserve Requirement

By Editors | 08/04/2020

The regulatory reserve release should be used to support customers impacted by Covid-19, and not to distribute dividends, buy back shares or pay bonuses.

Capital / Liquidity

BSP Offers Banks Mark-to-Market Relief, Cuts Liquidity Requirements

By Editors | 08/04/2020

The accounting relief allows banks to effectively reverse unrealised losses resulting from a change in fair value. The MLR cut frees up almost $200mn for smaller lenders.

Capital / Liquidity

Sri Lankan Brokers Prohibited from Charging Interest on Margin Loans

By Editors | 08/04/2020

The central bank has also suspended overseas investment and outward remittances by Sri Lankan residents, and cut interest rates for the second time in three weeks.

Capital / Liquidity

MAS Relaxes Capital Rules, Defers Policy Implementation

By Editors | 07/04/2020

MAS has adjusted banks’ capital and liquidity requirements to help sustain their lending activities, while also deferring a host of regulatory initiatives until further notice.

Capital / Liquidity

Singapore Govt to Increase Risk Share on SME Loans

By Editors | 06/04/2020

The government will increase its risk share of loans made under existing loan financing schemes from 80% to 90%, for loans initiated from 8 Apr until 31 Mar 2021.

Capital / Liquidity

HKMA Sets Out Treatment of Loans Under 100% Guarantee Scheme

By Editors | 06/04/2020

IRB AIs should seek the HKMA’s exemption approval to apply the standardised approach for SME loans granted under the 100% Guarantee Scheme.