Prudential Risk

Liquidity Risk

SZSE, CSDC Issue New Guidelines on Cash Management Products  

By Lucy Zhang | 16/08/2020

The guidelines limit cash management products to investing in only highly liquid assets, among other restrictions, to ensure investors’ rights are protected.

Credit Risk

CBIRC Projects ¥3.4tr in Bad Loans for 2020, More in 2021

By Editors | 16/08/2020

CBIRC chairman Guo Shuqing says banks should prepare by replenishing capital, increasing provisioning, and improving risk management.

Resolution & Recovery

FSB Publishes Information Gathering Template on FMI Access

By Editors | 16/08/2020

The template will streamline the process of gathering information about access to clearing, payment, settlement, custody and other FMI services in cases where firms need to be resolved.

Capital Adequacy

Bank Capital in a Public Health Crisis: Reflecting on Twin Challenges 

By Jamie Lloyd Evans | 16/08/2020

Industry veteran Jamie Lloyd Evans discusses Basel III in light of concerns regarding capital adequacy and bank lending, and offers some thoughts on potential design improvements to the capital framework.

Credit Risk

APRA, ASIC Update Guidance on Treatment of Deferred Loans

By Editors | 13/08/2020

Deferred loans need not be treated as past due or impaired for capital or reporting purposes until after 31 March. New reporting requirements will apply.

Emerging Prudential Risks

RBNZ Announces Expansion of Large-Scale Asset Purchases

By Editors | 12/08/2020

The RBNZ has expanded its quantitative easing programme to NZ$100bn and signalled a willingness to enter negative OCR territory, in response to Covid-19 related uncertainty.

Capital Adequacy

Malaysia SC Increases Gearing Limit for M-REITs

By Editors | 12/08/2020

The increase is temporary to provide Malaysian REITs greater flexibility to manage cash flows and debt and capital structures more efficiently.

Credit Risk

Decisions on Exiting Regulatory Relief Present Financial Stability Risk

By Manesh Samtani | 11/08/2020

As long as regulatory relief measures remain in the prudential framework, credit risks will continue to mount on bank balance sheets, presenting risks to financial stability.

Credit Risk

BSP Expects Sound Borrower Assessments, Forbearance Reporting

By Editors | 10/08/2020

Requirements to report forbearance granted to borrowers will ensure industry statistics reflect the “true health of the banking system” and incentivise prudence in banks’ credit decisions.