Capital Regulation

Banks and NBFCs will be allowed to restructure defaulted loans not yet classified as NPAs, provided the borrower has aggregate exposures less than $3.6mn.

The FSDC has given the green light to allow commercial banks to replenish their capital through issuing perpetual bonds. Bank of China likely to be the first to do so.

The committee is tasked with suggesting an adequate level of reserves for the central bank and proposing a policy for distributing dividends to the government.

The PBOC will boost oversight mechanisms, improve checks and impose penalties to prevent financial institutions' reserves at the central bank from falling below statutory requirements.

The government plans to pump $11.8 billion into public sector banks to raise them out of the RBI's PCA framework and increase the banking system's lending capacity.

The FSS plans to revise banking supervision bylaws during Q1 2019, with implementation of IRRBB at domestic banks expected in mid-2019.

The new 'targeted medium-term lending facility' is available to banks that demonstrate support for the real economy by lending to small and private companies.

Caps on investor and interest-only lending have served their purpose of moderating higher risk lending and improving lending standards, according to APRA chairman Wayne Byres.

Australian banks are reportedly lobbying for APRA to loosen its tough stance on the capital requirements it proposed last month, as funding costs rise more than expected.

The HKMA advises banks to start considering the system changes necessary to implement the Basel Committee's latest Pillar 3 disclosure requirements.