Prudential Risk

Emerging Prudential Risks

RBI to Create New Unit to Strengthen Financial Sector Supervision

By Editors | 23/05/2019

The Reserve Bank of India has announced the establishment of a new unit to streamline its supervision and regulation of banks and financial companies.

Capital Adequacy

Bangladesh Eases Banks’ Stock Exposure Rules to Free Up Capital

By Editors | 22/05/2019

In a bid to boost banking system liquidity, the central bank has excluded investments in non-listed securities from banks’ capital market exposure calculations.

Emerging Prudential Risks

New Structured Finance Transactions Face LIBOR Transition Risks

By Garima Chitkara | 22/05/2019

New covered bonds and securitisation deals face basis and transition risks due to the end of LIBOR in 2021.

Structural Regulation

MAS Proposes Consolidated Regulation, Licensing for Merchant Banks

By Editors | 22/05/2019

MAS is consulting on proposals to consolidate regulation of merchant banks under the Banking Act, and to move them to a licensing regime.

Credit Risk

APRA Proposes Loosening of Mortgage Rules

By Editors | 22/05/2019

APRA proposes to give ADIs more flexibility in the way they assess mortgage loan serviceability, while also increasing the maximum borrowing capacity for a given borrower.

Capital Adequacy

RBNZ Closes Bank Capital Consultation, NZBA Calls for Rethink

By Editors | 22/05/2019

The RBNZ’s capital proposals have been under fire since December. The NZBA is the latest to call for a rethink of the capital rules, citing economic costs estimated over NZ$1.8bn a year.

Credit Risk

Hong Kong-China Arbitration Arrangement a Boon for Lenders

By Manesh Samtani | 22/05/2019

The new arrangement enabling Hong Kong-seated arbitrations to seek interim measures from mainland courts represents a step forward for China’s offshore financiers.

Operational Risk

ANZ New Zealand Censured Over Internal Models

By Editors | 21/05/2019

The Reserve Bank of New Zealand has revoked ANZ’s right to model its operational risk capital requirements due to persistent failures in controls.

Credit Risk

China: Regulatory Pressure Prompts Lending Rate Price War

By Editors | 20/05/2019

ICBC was reportedly the first bank to lower its lending rate on small business loans, offering a rate of 4.5% in Q4 2018, compared to the PBOC’s one-year benchmark lending rate of 4.35%.