Capital Regulation

Authorities were forced to step in after depositors rushed to withdraw their savings from Yichuan Bank amid rumours that the bank was insolvent and a corruption probe into the bank's former chairman.

The BSP is considering placing limits on the interest rates and other fees lenders and finance companies can charge borrowers in response to a request from the SEC.

The fresh 100bp RRR cut follows a 100bp cut announced last month and a three-step 200bp cut from May to July this year.

All agency fees, consulting fees, management fees and default penalties will be included in the interest rate calculation, effectively lowering the threshold.

The BOJ and FSA will jointly coordinate stress tests on Japan’s three G-SIBs and four D-SIBs to assess how capital and liquidity could be affected if stocks fell and the yen spiked.

Pierre Latrobe at Mazars discusses the measures the HKMA has taken so far to strengthen its macroprudential supervisory toolkit and address potential risks to the wider financial system.

Large brokerage firms will be allowed to extend loans to their overseas operations to better finance their global outreach.

Since the previous report, member jurisdictions have made the most progress in adopting the NSFR, IRRBB, and large exposures framework.

The loan-to-deposit rate at savings banks will be limited to 110% starting from 2020, and further tightened to 100% in 2021. Currently, commercial banks already face the 100% limit.

The move to lower is aimed at deepening the debt market and reducing the intermediation cost that bond issuers could pass on to bond holders.