Capital Regulation

The requirement for small lenders to sell shares in the OTC markets before issuing preferred shares has been removed to allow them to more easily raise capital.

In its latest Financial Stability Review, the MAS highlights pressures on foreign currency liquidity and the potential impacts of a cyber attack on Singapore banks and their service providers.

The proposed revisions aim to align the CVA framework with the final market risk framework, and to adjust the scope of portfolios subject to CVA risk capital requirements.

Currently, 60% of medium- and long-term loans can be financed with short term deposits. This ratio reduces to 40% in January.

The RBNZ's financial stability report says it will bolster bank resilience with higher capital requirements and a “more intensive supervisory approach“.

The SCCyB is a targeted tool that national authorities can use to temporarily impose additional capital requirements that directly address the build-up of risks in a specific sector.

Moody's says the regulation may widen credit divergences between large and small banks, as the latter are less likely to receive less government support.

China Construction Bank, Bank of China and Ping An Bank have reportedly halted mortgage lending in Shenzhen, having depleted their 2019 quotas.

Financial risks have gradually shifted from rapid accumulation to high-level mitigation in the past few years, the PBOC says in its annual financial stability report.

A proportionate regulatory framework should not reduce the resilience of banks or dilute the prudential regulatory framework.