Prudential Risk

Resolution & Recovery

FSB Seeks Feedback on TLAC Implementation, Adequacy

By JP Reimann | 07/06/2018

Review focused on regulatory adoption, cross-border aspects of implementation, overall progress towards meeting TLAC requirements, instruments issuance and distribution, among others.

Liquidity Risk

The Philippines Adopts NSFR For Large Banks

By Garima Chitkara | 07/06/2018

Banks given six months starting 1 July to start reporting NSFR; banks unable to meet the ratio will need to submit funding plan to the central bank.

Resolution & Recovery

FSB Consults on Third Peer Review on Bank Resolution

By JP Reimann | 06/06/2018

Focus on D-SIBs and other banks that could be systemic in failure and are included in resolution planning at a jurisdictional level; feedback sought by 4 July.

Capital Adequacy

Sri Lanka State Banks Undercapitalised for Basel – Fitch

By Manesh Samtani | 05/06/2018

Large state banks short an estimated $120mn in capital, of which state banks account for 72%; government infusion may be needed to meet Basel III 2019 requirements.

Emerging Prudential Risks

China Resolves to Boost SMEs Financing to Mitigate US Tax Cut

By Garima Chitkara | 04/06/2018

Cabinet extends VAT exemption three more years for small firms, cuts reserve requirement at banks, commits to increasing financing options; PBOC reforms medium term lending facility to increase funding for SMEs.

Credit Risk

IFRS 9 to Cause Volatility in Singapore Bank Profitability – Moody’s

By Garima Chitkara | 04/06/2018

The adoption of Singapore’s equivalent of IFRS 9 will be neutral for bank capitalisation, but changing risk and macroeconomic conditions could lead to varying levels of provisioning, says Moody’s.

Liquidity Risk

China Finalises Liquidity Risk Rules for Banks

By Garima Chitkara | 04/06/2018

Banks with assets over CNY 200 million will be subject to NSFR and LCR requirements; new rules take effect from July 1.

Credit Risk

India Bank Employees Challenge RBI Loan Provisioning Norms

By Garima Chitkara | 04/06/2018

Organisation representing bank employees filed a writ against RBI February circular on provisioning norms which has resulted in heavy losses at public sector banks

Liquidity Risk

China Tightens Rules on Money Market Funds

By JP Reimann | 04/06/2018

New rules cap individual redemptions from money market funds at ¥10,000; payment companies banned from advancing cash to realise same-day redemptions.