Capital Regulation

The move is aimed at preventing an accounting practice the Finance Ministry says banks use to hide profits and dodge taxes and dividends.

Total problem assets in Bangladesh’s banking sector would rise by more than double if the computation included stay orders, special mention accounts, and rescheduled loans.

New FAQs make clear that deviations from the new rules after 4 October will not automatically be seen as noncompliance or result in disciplinary action.

The 100bp cut in bank reserve requirements is expected to free up about $2.1bn in the financial system "in support of credit activity".

From 4 October, margin loans will be capped at five times capital, despite appeals from brokerage firms to postpone the new rules by one year.

The RBI has ordered the troubled cooperative bank to cap withdrawals at 1,000 rupees per account, prompting panic, protests and promises of legal action from customers.

A three-year deadline to publicly list is approaching for small finance banks that were granted in-principle licences by the RBI in September 2015.

The guidelines are aimed at improving protections for depositors and creditors of banks that have decided to cease operations.

Nine of China's banks have issued perpetual bonds worth about 410 billion yuan so far, and another eight are preparing to raise another 400 billion yuan.

Recent policies to help delinquent borrowers have incentivised good borrowers to default, leading to a rise in NPLs that is threatening to overwhelm banks.