Capital Regulation

The financial holding companies say that a bail-in regime could lead to lower credit ratings and higher bank funding costs, based on an implied reduction in government support during a crisis.

APRA will align capital reforms with Basel III timelines, effectively pushing implementation to 1 January 2022. It has also adjusted the leverage ratio in response to consultative feedback.

The MAS financial stability review says asset quality is improving despite loan growth, and banks continue to maintain healthy provisioning and liquid assets "well above regulatory requirements".

The central bank also agreed to allow SMEs to restructure loans and extend the deadline for banks to comply with the capital conservation buffer by one year.

While long-term deleveraging and de-risking remain in place, China's authorities are likely to rely to a greater extent on public sector spending to support growth.

The Financial Stability Board has added France's Groupe BPCE to its 2018 list of global-systemically important banks and removed RBS and Nordea.

New rules governing bank TLAC holdings, concentration risk in sovereign exposures have been gazetted and will be presented before LegCo on 21 November.

The government and RBI have reached a temporary agreement on some issues after an unprecedented public spat between the two caused alarm about the central bank’s independence.

The new standard aims to reduce contingency risks for the central bank as a lender of last resort and ensure financial intermediaries supply sufficient HQLA assets.

The banking regulator is seeking feedback on a proposal to increase the Total Capital requirement for Australia's D-SIBs by 4-5% of risk-weighted assets by 2023.