The core capital held by the RBI is "too low" and could compromise its ability to manage risks, respond to negative income shocks and maintain operational independence.
Perpetual bonds can be swapped for central bank bills and serve as eligible collateral for PBOC lending. Bank of China issuance was more than 2x oversubscribed.
Clearinghouses should consider multiple risk factors in determining exposure and put more of its own capital on the line to manage defaults before dipping into the member default fund.
The Philippines has changed its rules for calculating bank capital to better reflect asset quality and align with computations used for capital adequacy.
Although it is still unclear which of the proposals will be adopted, the industry sees the data as so compelling that regulators will recognise the need for some form of relief.
The RBNZ's endeavours to strengthen the banks could come at a significant cost to the New Zealand economy, UBS has said in a research note.
The HKMA circular follows last week's publication of new minimum capital requirements for market risk by the Basel Committee on Banking Supervision.
Based on a review initiated in 2017, the Basel Committee says its 2008 Principles for Sound Liquidity Risk Management Supervision remain fit for purpose, while warning of risks ahead.
Bank of China's perpetual bond issuance is likely to see participation from foreign investors as China pushes to further open up its bond markets.
Eligible domestic borrowers can borrow up to $750mn per year in foreign currency or rupees from any entity in a country which is FATF or IOSCO compliant.
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