Featured Product

    RBI Circular on FALLCR Against Credit Disbursed to NBFCs and HFCs

    December 28, 2018

    RBI issued a circular that extends, to March 31, 2019, the Facility to Avail Liquidity for Liquidity Coverage Ratio (FALLCR) against credit disbursed to non-banking financial companies (NBFCs) and Housing Finance Companies (HFCs).

    Banks have been permitted to reckon government securities as Level 1 High Quality Liquid Assets (HQLA) under FALLCR within the mandatory statutory liquidity ratio requirement up to 0.5% of the bank’s Net Demand and Time Liabilities (NDTL) in respect of their incremental lending to NBFCs and HFCs after October 19, 2018. This facility was available up to December 31, 2018. Additionally, the single borrower limit for NBFCs (not financing infrastructure) has been increased from 10% to 15% of capital funds till December 31, 2018. To further facilitate banks to lend to NBFCs and HFCs as indicated, it has been decided to extend the aforesaid facilities up to March 31, 2019.

    The circular also noted that with effect from April 01, 2019, banks shall be guided by the instructions contained in circular dated December 01, 2016 in terms of which banks’ exposures to a single NBFC shall be restricted to 15% of their eligible capital base (tier 1 capital).

    Keywords: Asia Pacific, India, Banking, Liquidity Risk, Basel III, LCR, HQLA, FALLCR, NBFC, HFC, Statutory Liquidity Ratio, RBI

    Featured Experts
    Related Articles
    News

    APRA Updates Validation and Derivation Rules in September 2020

    APRA updated the lists of the Direct to APRA (D2A) validation and derivation rules for authorized deposit-taking institutions, insurers, and superannuation entities.

    September 24, 2020 WebPage Regulatory News
    News

    EC Proposes Frameworks for Crypto-Assets and Operational Resilience

    EC adopted a package that includes the digital finance and retail payments strategies and the legislative proposals for regulatory frameworks on crypto-assets and digital operational resilience.

    September 24, 2020 WebPage Regulatory News
    News

    ECB Publishes Opinion on Proposals to Amend Securitization Framework

    ECB published an opinion (CON/2020/22) on proposals for regulations amending the securitization framework of EU, in response to the COVID-19 pandemic.

    September 24, 2020 WebPage Regulatory News
    News

    FCA Consults on Regulation of International Firms in UK

    FCA is consulting on its approach to the authorization and supervision of international firms operating in UK.

    September 23, 2020 WebPage Regulatory News
    News

    MAS Amends Notice on Capital Adequacy Requirements of Banks

    MAS published amendments to Notice 637 on the risk-based capital adequacy requirements for reporting banks incorporated in Singapore.

    September 23, 2020 WebPage Regulatory News
    News

    FCA to Begin to Move Firms to New Data Collection Platform RegData

    FCA announced that it will move firms to RegData from Gabriel in the coming months in stages, based on the reporting requirements of firms.

    September 23, 2020 WebPage Regulatory News
    News

    ISDA Expects IBOR Fallbacks to be Effective by End of January 2021

    ISDA issued a letter to regulators to flag that it now expects the supplement to the 2006 ISDA Definitions and the Interbank Offered Rate (IBOR) Fallbacks Protocol to be effective around mid- to late-January 2021.

    September 23, 2020 WebPage Regulatory News
    News

    APRA Reviews Repayment Deferral Plans, Identifies Best Practices

    APRA has concluded its review of the comprehensive plans of authorized deposit-taking institutions for the assessment and management of loans with repayment deferrals.

    September 22, 2020 WebPage Regulatory News
    News

    ESAs Assess Risks to Financial Sector After COVID-19 Outbreak

    ESAs (EBA, EIOPA, and ESMA) published the first joint report that assesses risks in the financial sector since the outbreak of the COVID-19 pandemic.

    September 22, 2020 WebPage Regulatory News
    News

    BoE Confirms Withdrawal of COVID Corporate Financing Facility

    BoE and HM Treasury confirmed that the COVID Corporate Financing Facility (CCFF) will close for new purchases of commercial paper, with effect from March 23, 2021.

    September 22, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5836