Prudential Risk

Capital Adequacy

Easing Bank Capital Requirements Would Hurt Economy – RBI

By Editors | 03/01/2019

The RBI says that current provisioning is inadequate to cover future losses from bad loans, which have been underrecognised by Indian banks.

Capital Adequacy

Chinese Banks Will Face Capital, Liquidity Shortfalls Under Stress

By Editors | 03/01/2019

Stress tests indicate Chinese banks would face capital and liquidity shortfalls under adverse conditions, according to the PBOC’s latest financial stability report.

Structural Regulation

Regional Lenders Should Avoid ‘Blind Expansion’, says CBIRC

By Editors | 02/01/2019

New guidelines from China’s banking regulator will require small- and medium-sized financial institutions to apply for a licence to operate outside their home provinces.

Credit Risk

UPDATED – RBI Allows Lenders One-Time Restructuring of MSME Loans

By Editors | 01/01/2019

Banks and NBFCs will be allowed to restructure defaulted loans not yet classified as NPAs, provided the borrower has aggregate exposures less than $3.6mn.

Capital Adequacy

China Promotes Perpetual Bonds to Replenish Bank Capital

By Manesh Samtani | 31/12/2018

The FSDC has given the green light to allow commercial banks to replenish their capital through issuing perpetual bonds. Bank of China likely to be the first to do so.

Operational Risk

BNM Issues Policy Document Targeting Outsourcing Risk at FIs

By Editors | 31/12/2018

Malaysia’s central bank has raised expectations on the board and senior management to ensure effective oversight and governance of outsourcing arrangements.

Capital Adequacy

RBI ‘Expert Committee’ to Determine Best Use of Central Bank Reserves

By Editors | 30/12/2018

The committee is tasked with suggesting an adequate level of reserves for the central bank and proposing a policy for distributing dividends to the government.

Structural Regulation

UPDATED – China’s Asset Management Sector Set for Shake-Up

By Manesh Samtani | 28/12/2018

Up to 22 banks have announced plans to set up new wealth management subsidiaries which could end up taking market share from asset management firms.

Liquidity Risk

PBOC to Penalise Delayed Reserve Requirement Deposits

By Editors | 24/12/2018

The PBOC will boost oversight mechanisms, improve checks and impose penalties to prevent financial institutions’ reserves at the central bank from falling below statutory requirements.