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 Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
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.
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.
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.
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.
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
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.
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.
The Financial Conduct Authority (FCA) is seeking comments, until December 21, 2022, on the draft guidance for firms to support existing mortgage borrowers.
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.