Capital Regulation

The RBI has issued a notice on its large exposures framework, which is now in effect, clarifying that non-cleared derivatives will be considered outside its remit for another year.

The state-backed three-way merger of Vijaya Bank, Dena Bank and Bank of Baroda has taken effect, creating India’s third largest lender.

The FSC wants to grant new internet-only banks three years' grace on Basel III requirements to ease the regulatory burden during the early stages of their business operation.

The revised prudential standard enhances board oversight of credit risk and requires more intensive credit checks on borrowers. APRA also highlights the risks of P2P originated loans.

The RBI has again deferred 'until further notice' the implementation of new accounting rules for banks, which could have forced banks to raise bad loan provisions by $16bn in H2, said Fitch.

The FSC will overhaul the corporate loan approval system used at banks to broaden the scope of assets start-ups can pledge to secure financing.

The latest monitoring exercise indicates that all banks are meeting CET1 and LCR requirements, but that the biggest banks' capital ratios have fallen for the first time.

China's banking regulator has issued new rules requiring mandatory disclosure of NSFR every six months, and additional public disclosures of NSFR data on banks' websites.

Following a string of penalties against banks last month, the RBI has asked banks to improve their monitoring of the origin and end use of loan funds.

The FSA plans to stress test Japanese regional banks by mid-year and issue business improvement orders and possible restrictions on poorly performing banks.