BOT published a circular that sets out guidelines on releasing liquidity for unit holders of fixed income mutual funds. The circular includes questions and answers (Q&As) related to the guidelines. BOT deems it appropriate to specify a guideline in the event that financial institutions wish to release liquidity to customers holding investment units of the fixed-income funds by accepting investment units from such bond funds as collateral. In calculating credit risk-weighted assets, in accordance with the BOT notification regarding "Calculation of Credit Risk-Weighted Assets for Commercial Banks by the Standardized Approach (SA)," financial institutions are able to use the bond fund units as collateral for credit risk mitigation. Additionally, BOT proposed guidelines on digital lending, with the comment period ending on June 30, 2020.
Related Links (in Thai)
- Notification on Guidelines on Releasing Liquidity to Fixed Income Mutual Funds Holders
- Circular on Guidelines on Releasing Liquidity to Fixed Income Mutual Funds Holders (PDF)
- Consultation on Guidelines on Digital Lending
Comment Due Date: June 30, 2020
Keywords: Asia Pacific, Thailand, Banking, Q&A, Collateral, Bond Issuance, Standardized Approach, Credit Risk, Digital Lending, Fintech, Basel, Regulatory Capital, BOT
Previous ArticleBOJ and JFSA Write to Financial Institutions on LIBOR Transition
The Bank for International Settlements (BIS) published a paper that studies impact of fintech lending on credit access for small businesses in U.S.
The Prudential Regulation Authority (PRA) issued the policy statement PS8/22 to amend the Own Funds and Eligible Liabilities (CRR) Part of the PRA Rulebook and update the supervisory statement SS7/13 titled "Definition of capital (CRR firms).
The European Banking Authority (EBA) launched the EU-wide transparency exercise for 2022, with results of the exercise expected to be published at the beginning of December, along with the annual Risk Assessment Report.
The Single Resolution Board (SRB) welcomed the adoption of the review of the Capital Requirements Regulation, or CRR, also known as the "CRR quick-fix."
The European Commission (EC) recently adopted the Delegated Regulation 2022/1622, which sets out the regulatory technical standards to specify the countries that constitute advanced economies for the purpose of specifying risk-weights for the sensitivities to equity.
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.
The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.
The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).
The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.
The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.