Prudential Risk

Capital Adequacy

Taiwan Banks Have Stable Risk-bearing Capacity, Adequate Capital: FSC

By Editors | 22/06/2020

Taiwan’s FSC says only a few banks did not pass their stress tests, but they would have if new capital raised this year was taken into account.

Credit Risk

Chinese Officials Ask Banks to ‘Bear the Costs’ of Rising Bad Debt

By Editors | 21/06/2020

Chinese banks are asked to sacrifice 1.5tr yuan in 2020 profits to support businesses through lower lending rates and fees, loan repayment deferrals, and bad debt write-offs.

Capital Adequacy

RBI Unveils Regulatory Framework for Housing Finance Companies

By Editors | 19/06/2020

The new framework introduces enhanced capital and liquidity requirements for HFCs, and restrictions on intra-group exposures, among other changes.

Credit Risk

Bangladesh Defers End Date of Covid-19 Loan Classification Rules

By Editors | 19/06/2020

Banks should not change the classification of loans between 1 January and 30 September this year, even if borrowers fail to meet their scheduled repayment obligations.

Clearing & Post-Trade

Leveraging Technology and Hong Kong’s Unique Position to Manage Risk

By John Killian | 18/06/2020

Hong Kong markets have continued to operate resiliently, due in large part to the emphasis HKEX places on risk management, says Group Risk Officer John Killian.

Anti-Money Laundering

AUSTRAC Given Two Month Deadline for New Westpac Claims

By Editors | 17/06/2020

Separately, APRA has delegated enforcement powers to ASIC, allowing it to seek fines or banning orders if Westpac is found to have breached banking laws.

Liquidity Risk

Sri Lanka Cuts Statutory Reserve Ratio, Expands Lending Facility

By Duruthu E Chandrasekera | 17/06/2020

The CBSL has cut the statutory reserve ratio by 200 basis points, releasing $617mn in liquidity in the banking system. The size of its re-finance facility has also been tripled.

Liquidity Risk

BOJ Expands Coronavirus Lending Programme to Over $1tr

By Editors | 16/06/2020

BOJ governor Haruhiko Kuroda indicated that the total size of the programme could rise further, particularly if a second wave of Covid-19 infections emerges.

Emerging Prudential Risks

US Federal Reserve Launches Bond-Buying Programme

By Manesh Samtani | 16/06/2020

A step not taken during the 2008 GFC, the Fed has started to buy corporate bonds in the secondary market, in a bid to support market liquidity and ensure credit availability.