Capital Regulation

The draft frameworks will make it easier for banks and other lenders to remove loans from their books amid increasing asset quality and liquidity pressures.

Vietnam’s banking sector must take radical steps to adopt international capital rules, reporting requirements and trading practices, says Francois Denimal at FIS.

Potomac misinterpreted the financial resources rules and incorrectly including aged fees receivables as liquid assets, leading to an overstatement of liquid capital.

Under the bill, non-holding financial conglomerates like Samsung, Mirae Asset and Hyundai Motor will be subject to new requirements to monitor group risks and measure capital adequacy.

Companies obtaining loans under Covid-19 programmes are using the proceeds to invest in wealth management products, structured deposits, the stock market and the housing market.

US savers are increasingly likely to have exposure Chinese banks and their "large volumes of NPLs", says a report from a US Congressional advisory body.

The move is aimed at freeing up liquidity at smaller banks in the hope of spurring an additional 1tr yuan in lending to small and micro enterprises.

Banks need to be more agile in incorporating in their ECL model all latest reasonable and supportable information, including that which is forward-looking, says Pierre Latrobe.

The 1.9tr baht aid package includes additional liquidity for banks to lend to SMEs, and a corporate bond stabilisation fund to provide bridge financing to issuers.

Delaying loan loss recognition too long may leave banks and supervisors with fewer options for dealing with future risks to the banking system, a new paper says.