Moody's says the requirements are more conservative than existing limits on counterparty risk and will further reduce banks' maximum losses if a counterparty suddenly fails.
As a result of non-performing loans in the banking sector and excessive lending in violation of banking regulations, 15 banks in Bangladesh are facing provisioning shortfalls.
The new charter bolsters the BSP's powers to exercise its core mandate of promoting a sound financial system and address risks arising from the financial system's interconnectedness.
Much of the focus will be on lifting industry standards on governance, remuneration, and the management of non-financial risks, said APRA chair Wayne Byres.
State-owned lenders are instructed to increase loans to private firms by 30% this year, end discriminatory lending practices, and reduce their reliance on loan collateral.
The FSB is seeking feedback on observed trends and drivers in SME financing, and whether regulatory reforms such as Basel III have affected financing to SMEs.
The central bank has changed its risk weighting norms for bank exposures to NBFCs, making it more costly to lend to those that are rated poorly.
For-profit CCPs have incentives that are misaligned with financial stability, typically holding less capital and requiring less from clearing members than is optimal, says a BIS working paper.
Allahabad Bank and Corporation Bank have been released from PCA restrictions following the government's capital infusion last week; Dhanlaxmi Bank was found not in breach of any PCA risk thresholds.
Singapore's three largest banks will face greater asset risks and stagnation of net interest margins in 2019, making it a difficult year ahead for profitability, according to Moody's Investors Service.
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