BOT Guidelines on Releasing Liquidity for Unit Holders of Mutual Funds
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
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Previous Article
BOJ and JFSA Write to Financial Institutions on LIBOR TransitionRelated Articles
BOE Sets Out Its Thinking on Regulatory Capital and Climate Risks
The Bank of England (BOE) published a working paper that aims to understand the climate-related disclosures of UK financial institutions.
OSFI Finalizes on Climate Risk Guideline, Issues Other Updates
The Office of the Superintendent of Financial Institutions (OSFI) is seeking comments, until May 31, 2023, on the draft guideline on culture and behavior risk, with final guideline expected by the end of 2023.
BIS Paper Examines Impact of Greenhouse Gas Emissions on Lending
BIS issued a paper that investigates the effect of the greenhouse gas, or GHG, emissions of firms on bank loans using bank–firm matched data of Japanese listed firms from 2006 to 2018.
HMT Mulls Alignment of Ring-Fencing and Resolution Regimes for Banks
The HM Treasury (HMT) is seeking evidence, until May 07, 2023, on practicalities of aligning the ring-fencing and the banking resolution regimes for banks.
BCBS Report Examines Impact of Basel III Framework for Banks
The Basel Committee on Banking Supervision (BCBS) published results of the Basel III monitoring exercise based on the June 30, 2022 data.
PRA Consults on Prudential Rules for "Simpler-Regime" Firms
Among the recent regulatory updates from UK authorities, a key development is the first-phase consultation, from the Prudential Regulation Authority (PRA), on simplifications to the prudential framework that would apply to the simpler-regime firms.
DNB Publishes Multiple Reporting Updates for Banks
DNB, the central bank of Netherlands, updated the list of additional reporting requests and published additional data quality checks and XBRL-Formula linkbase documents for the first quarter of 2023.
NBB Sets Out Climate Risk Expectations, Issues Reporting Updates
The National Bank of Belgium (NBB) published a communication on climate-related and environmental risks, issued an update on XBRL reporting
EBA Updates Address Securitization Standards and DGS Guidelines
The European Banking Authority (EBA) published the final draft of the regulatory technical standards that set out conditions for assessment of homogeneity of the underlying exposures in simple, transparent, and standardized (STS) securitizations.
FSB Publishes Letter to G20, Sets Out Work Priorities for 2023
The Financial Stability Board (FSB) published a letter intended for the G20 Finance Ministers and Central Bank Governors, highlighting the work that FSB will take forward under the Indian G20 Presidency in 2023
