Asia-Pacific

An investigation that started in 2017 found irregularities with the funding Asia Yangon Bank planned to use to meet its paid-up capital requirements.

The debt moratorium will be implemented for personal loans, credit card debt, SME loans, among other sectors. Financial institutions are also directed to provide new working capital loans.

OJK will extend loan payment deadlines for MSMEs by up to one year and prohibit the use of debt collection services, while Bank Indonesia asks banks to lower lending rates.

Money market and daily fixed income funds can obtain low-cost liquidity assistance from banks, which can in turn use fund units they buy under repurchase agreements as collateral for BOT liquidity.

Banks can avoid reclassifying borrowers as defaulters until 30 June, allowing them to avoid extra provisioning and offer businesses new loans.

The 200 basis point cut will release up to 200bn pesos in bank liquidity. Lenders are encouraged to continue lending and to offer debt relief to borrowers.

Individual stocks will not be allowed to fall below their average closing prices of the preceding five days, and trading is curtailed to just three hours a day.

The central bank says the rate cut will have a greater impact if FIs take an active role to address borrowers' liquidity problems and accelerate debt restructuring.

Banks have also been told not to use debt collectors during the Covid-19 pandemic, and to instead help customers by restructuring existing debt and granting new subsidised loans.

Hong Kong, Singapore and Indonesia were assessed as compliant with global standards for the net stable funding ratio and large exposures framework.