Prudential Risk

Resolution & Recovery

MAS Consults on Resolution Regime Amendments

By Editors | 21/07/2018

Amendments include introduction of a contractual recognition requirement into financial contracts governed by foreign laws, the statutory bail-in regime, and creditor compensation framework, among others.

Capital Adequacy

Five Indian State-Run Banks to Receive Additional Capital Infusion

By Garima Chitkara | 19/07/2018

Indian government will infuse $1.6bn in additional capital into five state-run banks that have been struggling to meet capital adequacy ratios due to higher than expected losses from bad loans.

Cryptocurrency

Crypto Assets Come Under International Regulatory Scrutiny

By Garima Chitkara | 19/07/2018

The FSB submitted a report to the G20 detailing a framework to monitor potential contagion risks and wealth effects arising from crypto-assets.

Capital Adequacy

Sri Lanka Macroprudential Indicators Negative for Banks – Fitch

By Garima Chitkara | 18/07/2018

Sri Lanka’s “weak economic environment” and regulatory reforms may impact banks’ operating environment and credit profiles, says ratings agency Fitch.

Structural Regulation

Brexit Shifts Regulatory Powers to Continental Europe

By Peter Guy | 16/07/2018

The UK government’s Brexit white paper reveals disappointing support for London’s global role in financial regulations. London could be disintermediated as a financial centre.

Capital Adequacy

SEBI Amends Stress Testing Methodology for Commodity Derivatives

By Garima Chitkara | 12/07/2018

Minimum capital requirement for settlement guarantee fund has been fixed at INR100mn, as opposed to being determined through daily stress tests.

Liquidity Risk

Philippine NSFR Rules May Raise Funding Costs For Banks – Fitch

By Garima Chitkara | 12/07/2018

In a report by Fitch unit BMI Research, large banks in the Philippines may need to increase deposit taking and reduce long-term loans as a result of increased funding costs brought on by the new NSFR framework.

Capital Adequacy

New Zealand Tightens Rules on Calculating Bank Capital

By Garima Chitkara | 11/07/2018

RNBZ specifies additional restrictions on banks using internal models to calculate risk-weighted assets, as well as requirements to also use standardised models when reporting and for calculating operational risk.

Credit Risk

China Brokers Face Loan Risks Amid Market Sell-Off – Report

By Manesh Samtani | 11/07/2018

Equity-backed loans amount to 103% of net capital at Chinese brokerages; $2tn sell-off since January rapidly eroding value of collateral, reports Bloomberg.