Prudential Risk

Credit Risk

Bangladesh Banking Crisis Deepens as Defaulted Loans Hit Record

By Manesh Samtani | 02/07/2025

Stricter rules and a political shift in Bangladesh have exposed “hidden rot” in the banking sector, threatening credit access and economic growth.

Resolution & Recovery

New Zealand’s New Depositor Compensation Scheme Takes Effect

By Sanday Chongo Kabange | 02/07/2025

The new depositor compensation scheme protects depositors for up to NZD 100,000 in the event their bank or other licensed deposit taker fails.

Capital Adequacy

China Raises Capital Requirements for Consumer Finance Firms

By Editors | 02/07/2025

New rules for consumer finance companies raise minimum capital threefold and tighten risk management and consumer protection standards.

Credit Risk

FSC Korea Orders Sangsangin Plus Bank to Improve Management

By Editors | 02/07/2025

The action, the first of its kind since the 2011 crisis, comes as the bank’s delinquency rate tops 20%, more than double the industry average.

Credit Risk

Korea to Cap Risk Exposure for Real Estate Trust Firms

By Editors | 02/07/2025

Regulators will introduce a 100% capital-based limit on land trust risk and expand net capital ratio requirements to curb risks.

Credit Risk

Japan FSA Trials Machine Learning to Predict Credit Downgrades

By Manesh Samtani | 02/07/2025

The FSA is using loan-level and macro data to build an early-warning model for borrower downgrades, citing potential for supervisory use.

Credit Risk

SBV Directs Lenders to Earmark VND 500 Trillion for Key Projects

By Editors | 02/07/2025

The directive aims to accelerate key national infrastructure and transport projects amid ongoing challenges with site clearance and material supply.

Climate Risk

Japan Regulators Deepen Climate Risk Scrutiny with New Scenario Tests

By Editors | 02/07/2025

Separate analyses for banks and insurers highlight growing transition and physical risks, urging firms to enhance risk management frameworks.

Resolution & Recovery

MAS Proposes New Levies to Recoup Costs of Future Bank Failures

By Nithya Subramanian | 02/07/2025

MAS proposes post-crisis levies on banks to recover resolution costs, with larger contributions from those holding more uninsured deposits.