Capital Regulation

RBI, SEBI and the Indian government assured markets they will step in to fill any NBFC liquidity gaps after a recent default by an infrastructure financing firm.

The move is aimed at increasing investment into Chinese equities even as regulators take steps to reduce the risk posed by such products to bank balance sheets.

The FSC said it plans to approve two more Internet-only banks next year, a day after a bill passes allowing non-financial firms to boost their ownership stakes in such banks.

An IHS Markit survey of 34 banks in North America, Europe and Australia suggests the industry needs to move more quickly to get their target risk architectures for FRTB in place by 2022.

India has begun the process to merge Dena Bank, Vijaya Bank and Bank of Baroda in a bid to support their weak balance sheets and consolidate the state-run banking sector.

The branches sold unregistered investment products to other banks to channel funds into companies beyond what regulatory lending caps allowed.

FIA, IFF and GFMA said in a consultative response that the current capital regime overstates the risks of client clearing and raises the costs of providing client clearing services.

The regulator has levied fines of over 4 billion yuan in the past 20 months, four times the 1 billion yuan in fines it levied in the previous 14 years.

LegCo member Christopher Cheung met with SFC chairman Carlson Tong to represent broker concerns on potential margin lending restrictions.

A 20% ceiling was introduced in 2012 to prevent banks from buying up bonds issued by their own underwriting departments; banks can now buy any portion of a bond sale that is not fully subscribed.