Capital Regulation

APRA will modify its capital management guidance next week to account for a 'longer-term outlook', chairman Wayne Byres said.

K Bank’s recapitalisation plan was halted last April, forcing Korea’s first internet-only bank to stop offering loan products. It is now looking to regain ground lost to Kakao Bank.

The government is looking to sell majority stakes in state-owned banks, but the plan may not be feasible this financial year due to poor market conditions and rising bad loans.

The move to lower the reserve requirement ratio for thrift, rural and cooperative banks will release an estimated $200mn into the economy.

FRTB is a significant global industry challenge, but the process to achieve its outcomes can harness value from data that can be applied throughout a bank’s operations.

The Indonesia Deposit Insurance Corporation can now raise its own funding and provide temporary liquidity support to banks outside of resolution.

The CBIRC has approved the issuance of new shares to help Bank of Gansu raise its core tier 1 capital. Four state-owned companies will subscribe to the new shares.

Two banks have received conditional approval to list perpetual bonds on Bangladesh’s stock exchanges, while BSEC works to frame its rules for the listings.

RBI Governor Shaktikanta Das said minimum capital requirements may not be sufficient to absorb losses and maintain financial stability.

NPLs will appear in the next period and rise, the CBIRC said, citing deteriorating asset quality, accumulated risks and weaker profitability at small and medium-sized banks.