Capital / Liquidity

Capital / Liquidity

Bank Resilience to be Tested in the Coming Months: RBNZ

By Editors | 29/05/2020

Under the RBNZ’s ‘very severe’ stress test scenario, banks would fall below minimum regulatory capital, requiring “significant recovery responses” to avoid resolution options.

Capital / Liquidity

Using Capital Buffers Not As Easy As Hoped: APRA Chair

By Editors | 28/05/2020

Market expectations of bank capital levels and the knowledge that capital will eventually need to be rebuilt make it difficult for banks to dip into their buffers.

Capital / Liquidity

Taiwan Defers Basel III, Eases Provisioning Norms

By Editors | 28/05/2020

The FSC has also clarified its expectations on ECL estimates under IFRS 9 and reiterated its relaxation of the D-SIB surcharge requirement.

Capital / Liquidity

Japanese FIs to Be Granted Easier Access to State Aid

By Editors | 27/05/2020

Applicant financial institutions will no longer have to set profit targets as a condition for receiving state aid, and the 15-year repayment deadline will be scrapped.

Capital / Liquidity

Philippines Approves ‘Bad Bank’ Bill Amid Rising NPLs

By Editors | 27/05/2020

The ‘Financial Institutions Strategic Transfer Act’ allows the creation of asset management companies to buy up non-performing assets from financial institutions.

Capital / Liquidity

FSS Korea Directs Banks to Defer Business Expansion

By Editors | 27/05/2020

FSS governor Yoon Suk-heun said financial firms should brace for a “prolonged fallout of Covid-19” and focus on boosting internal reserves and loss absorbency capacity.

Capital / Liquidity

PBOC Governor Pledges Additional Measures to Support SMEs, Banks

By Editors | 26/05/2020

The PBOC plans to further extend SME loan repayment deferrals to 31 March 2021, further drive down real interest rates, and bolster support for banks.

Capital / Liquidity

Foreign Investors Flee Sri Lankan Bank Stocks Amid Dividend Ban

By Duruthu E Chandrasekera | 26/05/2020

Exacerbated by a seven-week stock market shut down, foreign investors sold large quantities of Sri Lankan bank stocks following a ban on bank dividends this month.

Capital / Liquidity

HKMA Issues Guidance on Treatment of Loans Under Relief

By Editors | 26/05/2020

The HKMA’s guidance on the treatment of loans subject to government guarantees and payment moratoriums is largely in line with guidance issued by the BCBS last month.