APRA cites “the risk of further stresses to come” as a determining factor, including the threat of new Covid-19 outbreaks and the withdrawal of financial assistance measures.
December 21, 2020The proposals could improve the competitive position of standardised banks relative to advanced banks, particularly in relation to residential mortgage portfolios.
December 10, 2020Restrictions on dividends and other payouts that can be imposed represent a 'first-mover disadvantage' to banks dipping into their capital buffers to support lending.
October 20, 2020The initial countercyclical capital buffer ratio will be set at zero, meaning capital requirements of banks have not been increased.
October 1, 2020Industry veteran Jamie Lloyd Evans discusses Basel III in light of concerns regarding capital adequacy and bank lending, and offers some thoughts on potential design improvements to the capital framework.
August 16, 2020Pierre Latrobe at Mazars discusses recent HKMA initiatives taken in response to Covid-19 and their implications for Hong Kong banks, highlighting credit risk as a growing threat.
May 13, 2020$10bn will be available to banks under the USD liquidity facility. The stress tests are being postponed to 2021 to free up banks' operational capacity.
April 23, 2020Using capital resources to support the real economy and absorb losses should take priority over discretionary distributions. HQLA stocks should be used to meet liquidity demands.
March 23, 2020Banks should be encouraged to undertake prudent renegotiation of loan terms for stressed borrowers, but loan classification and provisioning rules should not be eased.
March 18, 2020The base rate is being adjusted downwards to 0.86%, while the countercyclical capital buffer is being reduced from 2.0% to 1.0% to bolster lending.
March 16, 2020