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 European Commission (EC) published the Delegated Regulation 2022/786 with regard to the liquidity coverage requirements for credit institutions under the Capital Requirements Regulation (CRR).
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying the criteria to identify shadow banking entities for the purposes of reporting large exposures.
The European Insurance and Occupational Pensions Authority (EIOPA) published a report assessing insurers' exposure to physical climate change risks
The European Commission (EC) published the results of a public consultation, held in October 2021, on the review of the Web Accessibility Directive.
The Network for Greening the Financial System (NGFS) published two reports to aid central banks and regulators in their oversight of the financial sector and in their central bank operations
The Monetary Authority of Singapore (MAS) and the SC-STS are jointly consulting, until June 10, 2022, on setting adjustment spreads for the conversion of legacy SOR contracts to SORA reference rate.
The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.
The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.
The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.