Prudential Risk

Credit Risk

Bad Loans on the Rise at Small Chinese Lenders – Report

By Garima Chitkara | 30/07/2018

Central government efforts to reduce excess capacity has put pressure on local economies and firms’ ability to repay debt; thirteen banks have had their credit ratings cut or outlooks downgraded, according to analysis by Reuters.

Credit Risk

Hong Kong Bank Exposure Rules Compliance Pushed to Mid 2019

By Garima Chitkara | 30/07/2018

HKMA has extended the implementation deadline for its bank exposure limit rules to 1 July 2019 given the tight implementation deadline and concerns raised by the industry.

Market Abuse

UPDATED – US SEC Intensifies Probe into India’s NYSE-Listed ICICI Bank

By Manesh Samtani | 28/07/2018

SEC officials have questioned two of the bank’s top executives on whistle blower allegations that loan provisioning was unfairly delayed to inflate profits by $1.3bn over eight years.

Supervision & Enforcement

China Regulators Release First Half Enforcement Stats

By Manesh Samtani | 27/07/2018

During H1 2018, CBIRC fined 798 banks and banned 175 banker as part of its crackdown on risk; meanwhile, CSRC launched 307 investigations and initiated 108 new cases.

Resolution & Recovery

HKMA Releases Loss-Absorbing Capacity Consultation Conclusions

By Garima Chitkara | 26/07/2018

HKMA had consulted on the minimum required capital needed by systemically important institutions in case they are rendered non-viable.

Emerging Prudential Risks

China Clarifies Requirements for New Asset Management Framework

By Garima Chitkara | 26/07/2018

China’s central bank will allow banks with asset management businesses additional flexiblity in the implementation of its new regulatory framework that comes into effect in 2020.

Liquidity Risk

China P2P Lending Sector Survival Relies on Better Regulation

By Peter Guy | 26/07/2018

P2P platform failures due to liquidity shortfalls have crippled a key source of retail credit for consumers and small businesses. The future of P2P lending in China. Regulators need to play a more dominant role in this growing and unruly industry to assure its survival.

Capital Adequacy

PBOC to Ease Capital Rules for Some Banks to Boost Lending

By Garima Chitkara | 26/07/2018

PBOC is looking to lower a structural parameter used in its quarterly macro prudential assessment, effectively lowering the amount required for capital buffers at some banks.

Credit Risk

Indian Banks Sign Agreement to Hasten NPA Resolution

By Mark Pufpaff | 26/07/2018

Inter Credit Agreement give more influence to a consortium’s lead lender and allows for resolution plans to be approved with 66% agreement among majority lenders; signatories include over 80 lenders.