Regulators want to ensure banks are determining interest rates properly as household debt stubbornly refuses to decline.
Requirement that banks disclose capital ratio which would trigger restrictions on capital distribution will be at the discretion of individual regulators.
Board suggests MAS need to state who is responsible for macro-prudential oversight; wants resolution regime extended to market infrastructure.
The Trump administration’s Chapter 14 – a misguided attempt to end “too big to fail” by sending bank resolutions to court – will only heighten systemic risk.
Higher risk weightings for higher-risk residential mortgages will improve the alignment of capital to risk and better reflect their sensitivity to economic cycles, says Moody's.
DBS, OCBC and UOB will see greater interest income due to increased rates and improved capital buffers as oil and gas NPAs were recognised and provisioned in 2017.
The 100 basis point RRR reduction is expected to free up PHP90 billion of liquidity in the financial system.
Banks say businesses rely on overdraft loans for working capital, particularly during economic weakness.
MAS executive director also speaks about variable capital structure framework for investment funds slated for implementation in 2018.
APRA does not expect new rules to extend banks’ capital requirements beyond ‘unquestionably strong’ level set out last July.