Prudential Risk

Emerging Prudential Risks

FSB Takes Stock of Covid-19 Lessons on Financial Stability

By Manesh Samtani | 13/07/2021

Covid-19 may yet test the resilience of the global financial system, as lenders could still face additional losses as support measures are unwound, the FSB warns.

Capital Adequacy

FSC Korea Designates D-SIBs, Non-holding Financial Groups

By Manesh Samtani | 13/07/2021

The FSC has designated five bank holding companies and five banks as D-SIBs. Six conglomerates were designated as non-holding financial groups.

Credit Risk

RBI Penalises Fourteen Banks Over NBFC Lending

By Editors | 12/07/2021

The banks include Credit Suisse, Central Bank of India, SBI, Bank of Baroda, Bank of Maharashtra, IndusInd Bank, and Indian Bank, among others.

Liquidity Risk

PBOC Cuts Reserve Requirement to Boost Bank Lending Capacity

By Manesh Samtani | 12/07/2021

Market participants say that the earlier-than-expected RRR cut reflects policymakers’ concerns that banks may be under stress and facing higher NPLs.

Credit Risk

BOT Adjusts ‘Debt Clinic’ Criteria, Extends Debtor Support

By Editors | 12/07/2021

Measures to help debtors have been extended to continue until December 2021, allowing them to make repayments according to their ability to repay.

Cloud & Infrastructure

PBOC Directs Banks to Enhance Lending Services for MSMEs

By Editors | 12/07/2021

Banks should also increase investment in inclusive fintech including big data, cloud computing and blockchain to improve loan efficiency, the PBOC said.

Credit Risk

Malaysia Provides Six Month Automatic Moratorium to Borrowers

By Sanday Chongo Kabange | 11/07/2021

This is the second time Malaysia has introduced a comprehensive loan moratorium after its debut in March last year.

Capital Adequacy

‘Noisy’ Stress Tests Can Promote Risky Bank Behaviour

By Manesh Samtani | 11/07/2021

When supervisory stress tests are less accurate, capital surcharges and disclosure of outcomes can amplify risk-taking by banks, says a BIS working paper.

Structural Regulation

Known Applicants for Malaysia Digital Bank Licences

By Ranamita Chakraborty | 11/07/2021

The applicant groups include Grab, Singtel, Axiata Digital, RHB Bank, iFAST Corp, Bangkok Bank, BigPay, Sea Group, AEON Credit Service, Pertama Digital, and others.