Capital Regulation

Sectoral CCyBs increase banking system resilience at a lower cost than the Basel III CCyB, and can serve to reduce excessive credit growth and risks in targeted segments.

The guidelines will take effect in October, requiring brokers to limit margin lending to five times their capital, among other controls to reduce excessive leverage.

The central bank will have to issue a revised circular for banks on bad debt resolution after a February 2018 circular was invalidated by the Supreme Court this week.

The FSA will stress tests regional banks and force weaker lenders to take action to improve profitability, replace their management, or merge.

The draft policy framework sets out a proposed assessment methodology to identify D-SIBs in Malaysia and the applicable HLA and reporting requirements.

The RBI has issued a notice on its large exposures framework, which is now in effect, clarifying that non-cleared derivatives will be considered outside its remit for another year.

The state-backed three-way merger of Vijaya Bank, Dena Bank and Bank of Baroda has taken effect, creating India’s third largest lender.

The FSC wants to grant new internet-only banks three years' grace on Basel III requirements to ease the regulatory burden during the early stages of their business operation.

The revised prudential standard enhances board oversight of credit risk and requires more intensive credit checks on borrowers. APRA also highlights the risks of P2P originated loans.

The RBI has again deferred 'until further notice' the implementation of new accounting rules for banks, which could have forced banks to raise bad loan provisions by $16bn in H2, said Fitch.