RBI released a circular on prudential norms for classification, valuation, and operation of investment portfolio by banks, with respect to sale of investments held under the Held to Maturity (HTM) category. The circular mentions that apart from transactions that are already exempted from inclusion in the 5% cap, it has been decided that repurchase of State Development Loans (SDLs) by the concerned state government shall also be exempted.
In July 2015, RBI released a circular advising banks that if the value of sales and transfer of securities to/from HTM category exceeds 5% of the book value of investments held in HTM category at the beginning of the year, banks should disclose the market value of the investments held in the HTM category and indicate the excess of book value over market value for which provision is not made.
Keywords: Asia Pacific, India, Banking, Securities, Held to Maturity, Sale of Investments, RBI
Previous ArticleMAS Revises Capital Adequacy Requirements for Banks in Singapore
PRA, via the consultation paper CP12/20, proposed changes to its rules, supervisory statements, and statements of policy to implement certain elements of the Capital Requirements Directive (CRD5).
EIOPA published the financial stability report that provides detailed quantitative and qualitative assessment of the key risks identified for the insurance and occupational pensions sectors in the European Economic Area.
EBA published its risk dashboard for the first quarter of 2020 together with the results of the risk assessment questionnaire.
EBA announced that the next stress testing exercise is expected to be launched at the end of January 2021 and its results are to be published at the end of July 2021.
PRA published the consultation paper CP11/20 that sets out its expectations and guidance related to auditors’ work on the matching adjustment under Solvency II.
MAS published a statement guidance on dividend distribution by banks.
APRA updated its capital management guidance for banks, particularly easing restrictions around paying dividends as institutions continue to manage the disruption caused by COVID-19 pandemic.
FSB published a report that reviews the progress on data collection for macro-prudential analysis and the availability and use of macro-prudential tools in Germany.
EBA issued a statement reminding financial institutions that the transition period between EU and UK will expire on December 31, 2020; this will end the possibility for the UK-based financial institutions to offer financial services to EU customers on a cross-border basis via passporting.
SRB published guidance on operational continuity in resolution and financial market infrastructure (FMI) contingency plans.