Capital Regulation

HKMA has extended the implementation deadline for its bank exposure limit rules to 1 July 2019 given the tight implementation deadline and concerns raised by the industry.

HKMA had consulted on the minimum required capital needed by systemically important institutions in case they are rendered non-viable.

PBOC is looking to lower a structural parameter used in its quarterly macro prudential assessment, effectively lowering the amount required for capital buffers at some banks.

Inter Credit Agreement give more influence to a consortium's lead lender and allows for resolution plans to be approved with 66% agreement among majority lenders; signatories include over 80 lenders.

Vietnamese state-owned banks are raising external capital at a much slower pace than their privately-owned counterparts, putting pressure on their capital ratios and overall competitiveness, according to a Moody’s report.

Discussions are underway concerning a revision of South Korea’s Banking Act to nurture growth within the fintech industry, including a proposal to allow non-financial firms to hold up to 50% stakes in banks, including internet-only banks.

Basel’s new capital rules have impacted global derivatives markets by purging participants and liquidity. Whether or not this was the intended outcome, it will create onerous costs for entire markets and consumers.

Credit unions will apply stricter lending calculations for home mortgages starting this week, as the government tries to rein in rapid growth in household debt.

Rural commercial banks are experiencing credit downgrades as new loan classification rules force them to recognise souring loans as NPLs and set aside more capital against bad debt.

Amendments include introduction of a contractual recognition requirement into financial contracts governed by foreign laws, the statutory bail-in regime, and creditor compensation framework, among others.