SBV can take ‘special measures’ against institutions which breach regulations.
Products are typically used to circumvent provision and reserve requirements.
Regulator says ‘principles-based approach’ doesn’t ‘ensure sound residential mortgage lending assessments’.
Authorities to increase coordination, combine regulations, boost enforcement to target systemic risks.
Systemic banks will be required to set up crisis management teams.
Overseas banks will not be allowed to offer any other type of service.
New law to limit directorships; central bank could also tighten NBFI investment rules.
Provincial branch of CBRC allows banks to include certificates of deposit in regulatory capital.
Indian central bank also working on means of recapitalising or resolving stressed banks.
Banks and credit institutions will also soon be allowed to provide new types of loans including revolving credit.