Capital Regulation

FSB-aligned total loss-absorbing capacity rules will be presented to the LegCo on 24 October and will go into effect on 14 December.

The FSC has set limits on banks providing mortgage loans based on debt service ratios in new rules that will come into effect from 31 October.

Chinese banks have the lowest ratio of problems loans among BRICS nations, whereas Indian banks suffer from weak asset quality and profitability.

The updates to the FRR include changes on the treatment of foreign currencies, haircuts for some securities and refinements on securities transaction receivables.

The RBI has increased the carve out for government securities used in LCR computations against statutory liquidity ratios, and increased the lending ceiling to a single NBFC.

The Basel Committee is inviting feedback on the approach to reforming the leverage ratio as it applies to client cleared derivatives.

Japanese banks face profitability pressures and asset risks, even as liquidity and capitalisation remain robust, the ratings agency said.

Moody's says problem loan coverage has improved for many APAC banks, offsetting overall declines in CET1 ratios as a result of IFRS 9.

Foreign CCPs need to adhere to the same governance and capital requirements as domestic CCPs to apply for authorisation from the RBI.

Coming into force next year, the Payment Services Bill will require e-wallet operators to ring-fence wallet funds from lending activities, a move Moody's says will benefit banks.