Prudential Risk

Credit Risk

China to Lower Bad Loan Provisioning Requirements

By Editors | 23/04/2020

China will reduce the amount of capital small and medium-sized banks need to set aside to cover potential losses from loan defaults.

Capital Adequacy

Banks Sufficiently Capitalised to Pay Dividend, says RBA Governor

By Manesh Samtani | 22/04/2020

Australian banks are well-capitalised and have the ability to pay dividends, says RBA governor Philip Lowe. ANZ, Westpac and NAB are reportedly engaging with APRA on the issue.

Liquidity Risk

S. Korea Adds $60bn to Coronavirus Response Spending

By Editors | 22/04/2020

40tr won will go towards supporting key industries through loans, payment guarantees and investments. 35tr won will go to small merchants, P-CBO issuance and short-term debt purchases.

Liquidity Risk

HKMA Introduces USD Facility, Postpones Supervisory Stress Tests

By Manesh Samtani | 22/04/2020

$10bn will be available to banks under the USD liquidity facility. The stress tests are being postponed to 2021 to free up banks’ operational capacity.

Emerging Prudential Risks

RBNZ Proposes Removal of Mortgage Lending Restrictions

By Editors | 22/04/2020

The RBNZ intends to remove existing LVR restrictions for a period of one year, to help banks to keep lending to support customers, including with mortgage deferrals.

Credit Risk

BOJ Flags Financial Stability Risks from High Credit Costs, Investment Losses

By Editors | 22/04/2020

The BOJ has identified three main risks to the stability of the Japanese financial system – rising credit costs, investment losses and foreign currency funding risks.

Credit Risk

ECB Officials Push for ‘Bad Bank’ to Clean Up NPLs – Report

By Editors | 21/04/2020

ECB officials are concerned that the coronavirus pandemic will trigger a surge in NPLs that could hamper banks’ ability to lend.

Operational Risk

APRA Announces Reporting Requirement for Early Superannuation Release

By Editors | 21/04/2020

RSE licencees are asked to complete and submit APRA’s new Early Release Initiative data collection form on a weekly basis. The first data collection is due on 20 April.

Fraud, Scams & Cybercrime

Korea: Banks, Brokers Propose ‘Bad Bank’ to Recover Lime Asset Losses

By Editors | 21/04/2020

19 banks and securities firms will likely comprise the new entity, which will be charged with acquiring and selling the assets of Lime Asset Management’s funds.