Capital Regulation

The Depositor Compensation Scheme will protect up to NZD 100,000 per depositor, per licensed deposit taker, and is expected to be operational in late 2023.

The lower relending rate is expected to reduce funding costs for small and medium-sized banks and incentivise them to make agricultural and small business loans.

The findings reinforce the need for banks to continue to build capital and replace Tier 2 instruments that will cease to be compliant under the new rules on bank capital.

The FSB says work is under way to build up external TLAC for the four Chinese G-SIBs, but that all other G-SIBs report that they already meet or exceed the final TLAC requirement.

The potential for further credit quality deterioration remains, especially if downside risks from the pandemic materialise and cause prolonged disruptions to economic activity.

The cut, effective 15 December, will free up an estimated CNY 1.2 trillion in banking system liquidity to support the economy and reduce financing costs for businesses.

The FSC says the D-SIBs should take on more responsibilities to help Taiwan maintain financial stability and improve governance in the financial industry.

The CBIRC seeks to clarify the enforceability of close-out netting in China, saying the labelling of the country as a “non-netting jurisdiction” has harmed its financial institutions.

The FSB identifies good practices to help authorities enhance their preparedness for the management and resolution of a crisis affecting a G-SIB.

Promoters will be able to increase their long-run stakes in private sector banks from 15 to 26 percent. The capital requirement for a universal bank licence will be doubled.