Capital Regulation

If outstanding government securities continue to increase beyond 2021, the CLF may no longer be required in the foreseeable future, APRA says.

Loans to developers by large banks have been capped at 40% of total loans. Mortgages have been capped at 32.5% of total loans.

Implementation will occur in two phases, the first for contracts where the only counterparties are HKMA-authorised institutions and/or FIs that are part of G-SIBs.

The BOJ will pay an additional 0.1% interest to smaller lenders that decide to merge, integrate their businesses, or meet overhead reduction targets.

In June 2019, the FSC designated CTBC Bank, Cathay United Bank, Taipei Fubon Bank, Mega International Commercial Bank and Taiwan Cooperative Bank as D-SIBs.

Japan will adopt the Basel III standards in consideration of the characteristics of domestic financial institutions, the FSA said.

While banks performed better than expected this year, the FSS is concerned about new Covid-19 cases being detected in Korea and resulting economic uncertainty.

Kakao Bank is directed to set up an effective emergency plan for responding to a crisis, including detailed financing options to deal potential capital shortfalls.

APRA cites “the risk of further stresses to come” as a determining factor, including the threat of new Covid-19 outbreaks and the withdrawal of financial assistance measures.

China Galaxy Asset Management will receive its licence within ten days, and proceed with the necessary procedures to open for business in early 2021.