Capital Regulation

The BSP has given subsidiary banks and quasi-banks an extra year to meet the 100% LCR and NSFR requirements.

Foreign banks say added requirements are unnecessary, as their US branches are limited in their activities, rarely hold federally insured deposits, and are subject to home country rules.

South Korea's FSC is pushing to expand its oversight of conglomerates to include those that own other types of financial businesses besides banks.

India’s mortgage regulator is proposing to increase capital adequacy requirements for housing finance companies from 12% to 15% by March 2022.

Bangladesh Bank is spearheading a wide-ranging policy review to tackle soaring NPLs and willful defaulters in the nation’s banking sector.

Moody's says the requirements are more conservative than existing limits on counterparty risk and will further reduce banks' maximum losses if a counterparty suddenly fails.

As a result of non-performing loans in the banking sector and excessive lending in violation of banking regulations, 15 banks in Bangladesh are facing provisioning shortfalls.

The new charter bolsters the BSP's powers to exercise its core mandate of promoting a sound financial system and address risks arising from the financial system's interconnectedness.

Much of the focus will be on lifting industry standards on governance, remuneration, and the management of non-financial risks, said APRA chair Wayne Byres.

State-owned lenders are instructed to increase loans to private firms by 30% this year, end discriminatory lending practices, and reduce their reliance on loan collateral.