The latest Eurozone bailout has effectively sentenced the country to a generation of vassalage, creating a financial serfdom. Weak growth and regulatory shortcomings will only invite the next crisis.
Chinese regulators have been enforcing regulations more strictly to curb financial risk, causing bank NPL ratios to rise to 1.9% at end-May, up from from 1.75% at end-March.
S&P Global Ratings cites economic activity, fiscal policy, low credit risks, stringent regulation and favourable operating environment for well-capitalised banks.
New rules will require a minimum 40% fixed term loan component of working capital financing facilities by 1 October and 60% by 1 April 2019, to reduce cash credit borrowings which often entail loose repayment schedules, perpetual roll-overs.
China’s top financial regulators have issued a new circular that prohibits banks from falsely inflating their deposits, a common practice to improve quarterly and mid-year performance assessments.
Due to capital deficiencies, the Hong Kong branches of Allahabad Bank, Punjab National Bank and Indian Overseas Bank must hold HQLA equivalent to 100% of unpledged deposits and should not solicit customer deposits, among other measures.
Financial regulation is beginning to mirror the boom and bust cycles of the market as participants lobby regulators to loosen capital requirements – this at what appears to be the peak of the post-crisis economic growth cycle.
New rules lower the threshold for initiating a tender offer from 25 percent to 10 percent; new rules to only apply to private-sector firms.
New rules establish information sharing mechanism among lenders for collective gathering and cross-validating business and financial information of borrowers.
Korean FSS consulting to improve bank capital regime by tweaking risk weights on some loans and fine-tuning asset classification rules on restructured firms.