Capital Regulation

Shinhan Financial Group subsidiary Jeju Bank has been removed pursuant to April's temporary easing of regulations to exclude small-sized regional banks from the designation.

The BCBS identified a gap in the regulatory framework for securitisations of non-performing loans, which it is seeking to address through a new technical amendment.

Local governments will be allowed to buy ¥200bn in capital replenishment tools issued by small and midsize banks, with a fixed term, detailed repayment plan, and assurances on corporate governance and asset quality.

Taiwan's FSC says only a few banks did not pass their stress tests, but they would have if new capital raised this year was taken into account.

Chinese banks are asked to sacrifice 1.5tr yuan in 2020 profits to support businesses through lower lending rates and fees, loan repayment deferrals, and bad debt write-offs.

The new framework introduces enhanced capital and liquidity requirements for HFCs, and restrictions on intra-group exposures, among other changes.

Banks should not change the classification of loans between 1 January and 30 September this year, even if borrowers fail to meet their scheduled repayment obligations.

The CBSL has cut the statutory reserve ratio by 200 basis points, releasing $617mn in liquidity in the banking system. The size of its re-finance facility has also been tripled.

Banks are allowed to distribute cash dividends to general shareholders and stock dividends to sponsors and institutional investors.

The CBIRC has reportedly told small and midsize banks they can reduce the amount of capital they need to set aside to cover potential losses from loan defaults.