Capital Regulation

Lenders should not take any actions which tighten credit to borrowers on knowledge of their application for PLGS loans.

From Q1 2022, banks will need to make general provisions on the net funded country exposures on a graded scale ranging from 0.25 to 20 percent.

To facilitate the full implementation by 30 June 2024, banks are asked to arrange for the experimental adoption of the guidelines by 30 June 2021.

Bank capital adequacy could fall to 11.7% by 2022 in a baseline scenario, 9.3% in an adverse scenario, and 4.9% in a severe adverse scenario.

Priorities include ongoing Covid-19, digitalisation, climate risk, AI/machine learning, data and technology governance and operational resilience.

Neil Murphy talks to Regulation Asia about how prepared phase 5 and 6 firms are for compliance and how TriOptima is easing the burden through automation.

Most banks have insufficient economic incentives to draw down their buffers if they are asked to rebuild them later, says the IMF's Global Financial Stability Report.

The SSE has launched onsite inspections to bolster the quality of information disclosure and due diligence by underwriters.

Banks designated as D-SIBs will be subject to a capital surcharge of between 0.25 and 1.5 percent, on top of the mandatory capital adequacy ratios.

Effective from 30 June, the framework for the supervision of non-holding financial groups will help enhance the management of group-wide risks.