CAPITAL / LIQUIDITY

Capital / Liquidity

New Zealand to Probe Lenders on Application of New Lending Rules

By Mark Johnston | 20/01/2022

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.

Capital / Liquidity

ASX Recalibrates Capital Requirements for Clearing Participants

By Manesh Samtani | 20/01/2022

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.

Capital / Liquidity

BSP Evaluates Sustainable Finance Incentives for Banks

By Mark Johnston | 18/01/2022

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

Capital / Liquidity

MAS Gets New Mechanism to Transfer Excess Reserves to GIC

By Darien Choong | 17/01/2022

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.

Capital / Liquidity

HKMA Issues Draft Guidance on Liquidity and Funding in Resolution

By Manesh Samtani | 16/01/2022

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

Capital / Liquidity

RBI Proposes New Classification Norms for Bank Investments

By Editors | 14/01/2022

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.

Capital / Liquidity

FSC Korea Issues New Rules for Mutual Finance Companies

By Editors | 13/01/2022

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.

Big Picture

FRTB Will Turn Banks Away from Fund Investment Activity

By Manesh Samtani | 13/01/2022

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.

Capital / Liquidity

RBI Updates Liquidity Standards to Align with Basel Norms

By Editors | 11/01/2022

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.