CAPITAL / LIQUIDITY

Big Picture

China Shadow Bank Risk On The Decline – Moody’s

By Garima Chitkara | 02/07/2018

Chinese banks are returning to conventional lending and away from shadow banking activities according to banking statistics released by Chinese regulators, says Moody’s Investors Services.

Capital / Liquidity

India’s IDBI Bank to Receive Lifeline from State-run Insurer

By Garima Chitkara | 02/07/2018

India’s insurance regulator has approved the acquisition of a 51% stake in IDBI Bank by Life Insurance Corp, in a deal worth $1.9bn; The bank had more than a quarter of its loan book marked as non-performing at March 2018.

Capital / Liquidity

S. Korea Trials New Regulatory Framework For Financial Holding Firms

By Garima Chitkara | 02/07/2018

FSC has developed a new standard for gauging capital adequacy at South Korea’s financial conglomerates; The new metric ranks Samsung the highest and Hyundai the lowest – but still above levels that would require it to raise equity.

Capital / Liquidity

RBI Report Paints Gloomy Picture for India’s Banking Sector

By Manesh Samtani | 02/07/2018

Stress tests indicate NPA ratios at Indian banks to fall to lowest level since year 2000; Public sector banks to be hit the hardest, with six expected to experience capital shortfall.

Capital / Liquidity

Communist Party Committees To Foster Risk Aversion at Chinese Banks

By Garima Chitkara | 28/06/2018

China’s regional and mid-tier banks are formally establishing Communist Party committees in support of the government’s bid to crackdown on excessive risk taking in the banking sector.

Enforcement

S. Korea Investigates Three Banks for Loan Rate Manipulation

By Garima Chitkara | 28/06/2018

Citibank Korea, BNK Kyongnam Bank and KEB Hana Bank are being investigated by FSS over allegedly manipulating loan rates to overcharge retail borrowers.

Capital / Liquidity

Deutsche Bank Pressures Tied to Regulatory Woes

By Peter Guy | 28/06/2018

It’s impossible to separate Deutsche Bank’s ongoing regulatory compliance shortcomings from its business exigencies. The recent and unusual censure from the Federal Reserve highlights the bank’s inexorable pressures.

Capital / Liquidity

Laos Scraps Restrictions on Foreign Currency Loans

By Manesh Samtani | 26/06/2018

The 2016 restriction on lending in foreign currencies has been removed in order to allow banks to inject overseas-sourced funding into the country’s economy.

Capital / Liquidity

BIS Warns Of Vulnerabilities In Non-Bank Sector

By Garima Chitkara | 25/06/2018

BIS warns of changing bank business models that has increased the market share and interlinkages among non-bank firms, especially asset management firms that are increasingly vulnerable to interest rate and redemption risks.