The rankings will be used to alert the central bank to risks at financial institutions in the interest of safeguarding the banking system and protect depositors.
Write-offs are the quickest and most direct way to reduce NPL ratios and free up the supply of credit at commercial banks.
India’s central bank has removed the Bank of India, Bank of Maharashtra and Oriental Bank of Commerce from lending restrictions under its prompt corrective action framework.
APRA has maintained the countercyclical capital buffer rate at zero percent, focusing instead on targeted measures to improve eroded bank lending standards.
China's recent moves to help banks replenish capital through perpetual bond issuances are seen as a bailout of the banking system. But what happens in another crisis?
In response to stakeholder feedback on doubling bank capital requirements, the RBNZ has extended the consultation deadline and released research originally intended for internal use.
The IMF has assessed that robust financial regulation and supervision should help Hong Kong weather domestic and external shocks despite growing risks to the city's outlook.
The core capital held by the RBI is "too low" and could compromise its ability to manage risks, respond to negative income shocks and maintain operational independence.
Perpetual bonds can be swapped for central bank bills and serve as eligible collateral for PBOC lending. Bank of China issuance was more than 2x oversubscribed.
Clearinghouses should consider multiple risk factors in determining exposure and put more of its own capital on the line to manage defaults before dipping into the member default fund.