Capital Regulation

The government has asked the Council of Financial Regulators to bring forward an investigation into whether lenders are implementing the new lending rules as intended.

An October 2020 proposal to introduce 'Adjusted Liquid Capital' as a single capital measure will be implemented no earlier than February 2023, with some adjustments.

The BSP is considering using preferential rediscount rates and providing high value loans to help banks finance green loans and sustainable investments.

The RBI proposes to divide banks' investment portfolios into three categories - held-to-maturity, available for sale, and fair value through profit and loss account.

MAS will transfer about SGD 185 billion in excess reserves to the government in stages. GIC is estimated to become the world's third-largest sovereign wealth fund as a result.

The HKMA expects banks to be able to model liquidity and funding needs in a resolution scenario over various time horizons.

The rules will limit lending to the real estate and construction sectors and require mutual finance companies to maintain a minimum liquidity ratio based on firm size.

The FRTB treatment of equity investments in funds is "excessively conservative" and could prompt banks to reduce their activity in the sector, ultimately weakening the market.

The RBI has raised the deposit threshold under which small business customers can be managed as retail deposits for the purposes of LCR and NSFR.

Central bank deposits will be excluded from total exposure when calculating the leverage ratio until the end of March 2024.