Prudential Risk

Credit Risk

S. Korean Regulators Urge Flexible ECL Approach During Covid-19

By Editors | 13/04/2020

South Korean regulators are advising companies and auditors to consider government relief measures as risk-reducing when determining expected credit losses.

Liquidity Risk

BSP Announces New Measures to Support Domestic Liquidity

By Editors | 13/04/2020

The BSP will expand the eligible securities it can purchase in the secondary market to include all peso-denominated government securities, rather than just those that are highly traded and liquid.

Resolution & Recovery

PBOC to Help Fund Bailout of Another Regional Lender

By Editors | 13/04/2020

Bank of Gansu, a Chinese regional lender listed in Hong Kong, will reportedly receive a capital injection from the Gansu provincial government, supported by the PBOC.

Supervision & Enforcement

CBIRC to Grade Banks on Services for Small, Micro Enterprises

By Editors | 13/04/2020

Commercial banks that receive the lowest scores will be subject to targeted business improvement orders and enhanced supervision.

Liquidity Risk

Bangladesh Bank Frees Up Additional Bank Lending Capacity

By Editors | 13/04/2020

Bangladesh Bank has increased lending and investment limits for conventional and Shariah banks, respectively, and further lowered the cash reserve requirement and repo rate.

Liquidity Risk

SC Malaysia Asks Fund Managers to Ramp Up Liquidity Stress Testing

By Editors | 12/04/2020

Stress testing should be conducted more regularly to assess the impact on fund liquidity and redemptions, and to pre-empt liquidity shortages before they occur.

Credit Risk

Australia Commences Coronavirus SME Guarantee Scheme

By Editors | 12/04/2020

The 50% government guarantee under the scheme enables lenders to offer loans to SMEs “cheaply and more freely compared to ordinary business loans”.

Credit Risk

New Zealand: Mortgage Deferrals Will Not Impair Credit Ratings

By Editors | 10/04/2020

Banks have agreed with credit reporting agencies that customers who defer mortgage repayments due to Covid-19 will not have their credit ratings downgraded.

Trading & Investment

FSC Korea Moves to Support Corporate, Fintech Funding Needs

By Editors | 10/04/2020

Korea’s bond market stabilisation fund has begun operating. Additional support will come through a new bond underwriting programme, P-CBOs, and direct investment into fintechs.