Prudential Risk

Liquidity Risk

S. Korea to Deploy Emergency Measures to Minimise Covid-19 Impact

By Editors | 17/02/2020

The central bank is working on financial aid packages for the sectors directly affected by Covid-19, on top of the 1.9bn won package already announced by the government to aid SMEs and small merchants.

Capital Adequacy

Bangladesh Banks to Get Credit Support for Stock Market Investment

By Editors | 17/02/2020

Stock market investment through the credit support package will not count towards the maximum allowed stock market exposure of 25% of capital.

Trading & Investment

Korea to Strengthen Regulatory Framework for Hedge Funds

By Manesh Samtani | 15/02/2020

The FSC will cap illiquid investments at 50% for open-ended funds, require them to conduct regular stress tests, raise transparency of complex fund structures, and enhance supervisory monitoring.

Credit Risk

HKMA Convenes Special Teleconference on SME, Personal Lending

By Editors | 14/02/2020

The Banking Sector SME Lending Coordination Mechanism discussed ways to extend greater support to SME and retail customers, in light of the Covid-19 threat to cashflows.

Credit Risk

BSP Extends Prudential Loan Cap Transition Period for Foreign Banks

By Editors | 14/02/2020

The extended transitory period is aimed at ensure continued financing support for public sector initiatives under the ‘Build, Build, Build’ programme by foreign bank branches.

Operational Risk

Better Supervision Associated with Lower Operational Risk: BIS Paper

By Manesh Samtani | 14/02/2020

Banks take an average 251 days to discover the occurrence of operational loss events, and 184 days to move from discovery and recognition, according to a new BIS paper.

Liquidity Risk

DBS Announces Relief Measures for SME, Retail Clients

By Editors | 14/02/2020

Relief will be provided on SME property loans, import facilities and retail mortgage loans. The announcement comes after a DBS employee tested positive for Covid-19.

Emerging Prudential Risks

HKMA Vows to Preserve Stability Amid Covid-19 Threat

By Editors | 13/02/2020

HKMA chief Eddie Yue indicated a willingness to be flexible towards banks facing difficulties in meeting regulatory requirements.

Credit Risk

CBIRC Asks Banks to Relax Loan Classification Standards

By Manesh Samtani | 13/02/2020

Local banks are asked to be more tolerant of bad loans and to reduce their profit targets, as the novel coronavirus epidemic keeps borrowers from resuming normal business operations.