The BOT is considering reducing the amount of capital banks are required to set aside for NPLs as one possibility to incentivise debt restructuring.
Several EU banks may be purposefully compressing their balance sheets at year-end to lower their G-SIB scores and the associated capital surcharges.
The new approach increases clarity around capital requirements at different stages for new entrants to the banking sector.
The maximum threshold of deposit protection will be lowered from 5 million baht to 1 million baht, effective from 11 August.
The reforms will enable customers to access their deposits within 90 days if a bank is unable to fulfill its obligations due to a moratorium.
The impacts of the second wave of the Covid-19 pandemic have been visible in the real estate sector, the RBI said. It is also monitoring stressed assets in the banking sector.
CET1 capital may not have unusual features that could undermine its role as the highest quality loss-absorbing capital. The final APS 111 takes effect from 1 January 2022.
The new reporting policy will enable the central bank to monitor NBFI lending more closely and ensure provisions are being adequately maintained.
The RBNZ will further restrict high-LVR lending, and also consider the use of DTI restrictions and interest rate floors.
The outstanding balance of short-term financing instruments issued by securities companies shall not exceed 60 percent of net capital.
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