Capital Regulation

China’s sovereign wealth fund and the Shandong provincial government will invest in Hengfeng Bank, which failed to disclose its financial statements for two straight years.

The RBI will increase bank exposure limits for NBFCs, allow on-lending to priority sectors, and enable near-real-time tracking of payments fraud through the creation of a centralised registry.

Korea has adjusted its domestic implementation schedule for the incoming requirements, taking into account the one-year phased extension announced by BCBS and IOSCO in July.

NBFCs can use overseas borrowings to fund working capital, repay rupee loans, and on-lend to domestic customers. Banks can also sell distressed loans to eligible overseas lenders.

The new measures encourage banks to set up subsidiaries to invest in debt-for-equity swaps, helping them to offload distressed debt and ease rising NPL pressures.

From 1 July 2020, banks will be required to maintain a minimum NSFR of 100% at all times and to submit NSFR reports to BNM on a quarterly basis.

The Fed and FDIC have accepted the resolution plans of 82 foreign banks, and granted an extra year extension before the next resolution plans need to be submitted.

The changes follow the RBNZ's revocation of ANZ's right to model its operational risk capital requirements in May.

An ICBC unit will invest up to 3 billion yuan for a more than 10% stake in Bank of Jinzhou, whose auditor quit in May citing loan inconsistencies.

The guidelines seek to ensure that risks from banks' investment activities are effectively identified, measured, monitored and controlled.