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
US Agencies Issue Several Regulatory and Reporting Updates
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
ECB Issues Multiple Reports and Regulatory Updates for Banks
The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.
HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements
The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.
EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR
The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.
CBIRC Revises Measures on Corporate Governance Supervision
The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.
HKMA Publications Address Sustainability Issues in Financial Sector
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
EBA Updates Address Basel and NPL Requirements for Banks
The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.
ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite
The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.
FCA Sets up ESG Committee, Imposes Penalties, and Issues Other Updates
The Financial Conduct Authority (FCA) is seeking comments, until December 21, 2022, on the draft guidance for firms to support existing mortgage borrowers.
FSB Reports Assess NBFI Sector and Progress on LIBOR Transition
The Financial Stability Board (FSB) published a report that assesses progress on the transition from the Interbank Offered Rates, or IBORs, to overnight risk-free rates as well as a report that assesses global trends in the non-bank financial intermediation (NBFI) sector.
