Capital Regulation

The RBI has announced the final tranche of the capital conservation buffer will be applicable from 31 March 2020 instead of 31 March 2019.

Banks will need to provision for IL&FS assets at the standard rate of 15% in the first year in the December quarter and will not get the six month reprieve they had asked for.

By setting mortgage priority amounts almost three times the home loan principal, banks are preventing borrowers from shopping around for a second mortgage.

FWD Life also failed to maintain satisfactory internal controls and written compliance procedures as required under the SFC Code on MPF Products and the Fund Manager Code of Conduct.

The central bank is expected to allow financial institutions greater flexibility in setting interest rates for loans and deposits in the year ahead.

A 100 basis point RRR cut will be implemented in two phases this month, releasing $218bn of liquidity into the banking system.

The Philippine banking system “remained robust and continued to exhibit strong capital position and sustained growth in core earnings”, says BSP deputy governor Chuchi Fonacier.

The central bank has tweaked its definition of SMEs to include more firms and reduced reserve requirements for banks lending to these firms.

The RBI says that current provisioning is inadequate to cover future losses from bad loans, which have been underrecognised by Indian banks.

Stress tests indicate Chinese banks would face capital and liquidity shortfalls under adverse conditions, according to the PBOC's latest financial stability report.