Capital Regulation

Review focused on regulatory adoption, cross-border aspects of implementation, overall progress towards meeting TLAC requirements, instruments issuance and distribution, among others.

Banks given six months starting 1 July to start reporting NSFR; banks unable to meet the ratio will need to submit funding plan to the central bank.

Focus on D-SIBs and other banks that could be systemic in failure and are included in resolution planning at a jurisdictional level; feedback sought by 4 July.

Large state banks short an estimated $120mn in capital, of which state banks account for 72%; government infusion may be needed to meet Basel III 2019 requirements.

Cabinet extends VAT exemption three more years for small firms, cuts reserve requirement at banks, commits to increasing financing options; PBOC reforms medium term lending facility to increase funding for SMEs.

The adoption of Singapore’s equivalent of IFRS 9 will be neutral for bank capitalisation, but changing risk and macroeconomic conditions could lead to varying levels of provisioning, says Moody's.

Banks with assets over CNY 200 million will be subject to NSFR and LCR requirements; new rules take effect from July 1.

Organisation representing bank employees filed a writ against RBI February circular on provisioning norms which has resulted in heavy losses at public sector banks

Every banking system at the bottom of the financial pool crosses paths eventually, and in desperate times only a tangled morass of regulations versus sovereign imperatives awaits.

Banks like Bank of China, Agriculture Bank of China, BOCOM and ICBC received upgrades on the back of an upgrade to China’s macro profile.