Capital Regulation

Since March 2020, the lower SRR ratio and flexibility to recognise MGS and MGII as part of SRR compliance have released MYR 46 billion in banking system liquidity.

Stress tests indicate 4 banks may fail to meet minimum capital requirements by September 2021 under the baseline scenario.

Banks have reportedly been asked to prepare for a trial programme that will see China’s bad debt managers buy up soured personal loans.

The CBIRC says rural banks should boost capital, merge with other institutions, or introduce strategic investors to mitigate financial risks.

State-owned banks based on their contributions to the economy, high quality development, risk management, and operational efficiency.

If outstanding government securities continue to increase beyond 2021, the CLF may no longer be required in the foreseeable future, APRA says.

Loans to developers by large banks have been capped at 40% of total loans. Mortgages have been capped at 32.5% of total loans.

Implementation will occur in two phases, the first for contracts where the only counterparties are HKMA-authorised institutions and/or FIs that are part of G-SIBs.

The BOJ will pay an additional 0.1% interest to smaller lenders that decide to merge, integrate their businesses, or meet overhead reduction targets.

In June 2019, the FSC designated CTBC Bank, Cathay United Bank, Taipei Fubon Bank, Mega International Commercial Bank and Taiwan Cooperative Bank as D-SIBs.