Capital Regulation

New rules require banks to contribute no more than 70 percent of the capital when providing loans through an online lending platform.

MAS proposes to enhance the current requirements relating to enterprise risk management, investment risk management and disclosure practices.

SIFIs will have 3 months after designation to submit recovery plans to regulators. The FSC will have the authority to demand action from a SIFI in line with its recovery plan.

The law will help cushion lenders from a build-up of bad loans due to the Covid-19 crisis, allowing them to dispose of bad assets and keep the banking system stable.

The committee will take stock of existing regulatory measures and their impacts and recommend other suitable measures to strengthen the sector.

Deputy governor Geoff Bascand says the financial stability risks now exceed those foreseen at the time of the RBNZ’s consultation in December.

The RBI has deferred implementation of the NSFR and the final tranche of the CCB, while also extending a number of other liquidity-boosting initiatives.

The FSC noted that 27 of 40 major global economies are taking similar measures to restrict dividends and share buybacks to ensure financial sector stability.

The revisions refine the existing ‘three-pillar’ framework in the areas of capital requirements, solvency measurement and methods of resolution.

Individual contributions by asset managers towards the new LPCC will be calculated based on their AUM in open ended debt-oriented mutual fund schemes.