Years of prudent macroeconomic policies and robust financial regulation and supervision will help Hong Kong weather possible domestic and external shocks, the IMF says.
The updated framework accounts for finalised post-crisis reforms under Basel III and includes new disclosure requirements for asset encumbrance and capital distribution constraints.
An inquiry by Australia's competition watchdog found that opaque discretionary mortgage pricing at major banks is stifling competition and disincentivising borrowers from seeking better offers.
New rules for financial holding companies could include requirements on capital adequacy, caps on non-financial assets, and segregation of business units.
Banks will face challenging conditions in 2019 due to moderating economic growth, slowing credit expansion and US-China trade tensions, but have adequate buffers against growing risks.
Amended 'Code on Unit Trusts and Mutual Funds' to take effect in January with 12-month transition period. Proposals on classification of derivatives funds have been revised.
Starting in January 2019, the RBI will reduce the SLR holding requirement by 25 basis points every quarter until it reaches 18% in April 2020.
Asset quality in the banking system is deteriorating due to governance weaknesses, with banks dipping into their core capital due to non-payment of loans.
Banking system reforms will have to adapt to new risks to mitigate the effects of the next financial crisis, said BCBS secretary general William Coen, hinting at a future 'Basel IV'.
The RBI has reduced the holding time required for loans with maturities of over 5 years before they can be securitised.
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