Capital Regulation

The budget includes the establishment of a ‘bad bank’ to take over banks' bad assets and a plan to inject INR 200 billion into state lenders.

The Sri Lankan central bank has lowered the risk weights applicable to credit risk for foreign claims on the central government and residential housing loans.

Trade loans granted 90-day extensions last year will start to fall due in February, but some trade customers are still facing cash flow pressure, the HKMA said.

The PBOC is seeking to reduce excess leverage in the financial system to address concerns of potential medium and long term economic and financial risks.

The draft rules set out six aspects of debt quality management that banks will have to incorporate in their systems, as part of efforts to prevent risks.

In an L-shaped scenario, the capital buffer and D-SIB ratios of numerous banks fell short of the required levels in stress tests, the FSC said.

While small banks face acute funding needs, larger banks and G-SIBs will similarly have to bolster capital to address rising NPLs and incoming regulatory requirements.

PwC's South East Asia Consulting team discusses progress made to comply with BCBS 239 in Southeast Asian jurisdictions, providing an outlook and recommendations for the year ahead.

The fund is part of an initiative to help central banks incorporate environmental sustainability objectives in the management of their reserves and capital.

About 25 to 30 NBFCs considered systemically significant will have to maintain a 9% CET1 ratio and be subject to a range of other bank-like regulatory requirements.