Non-performing loans (NPLs)
ECB testing banks’ ability to deal with a second wave of Covid-19 – Enria
ECB head of supervision stresses banks are reluctant to use buffers because of market reaction
Sarb’s Kganyago ‘concerned’ over sovereign-bank links
Financial stability report warns banking sector is exposed to overstretched government finances
Tighter supervision improves bank performance – NY Fed paper
Researchers examine performance of heavily and lightly regulated banks from 1991 to 2014
ECB takes unprecedented steps to preserve credit provision
Central bank accepts state-guaranteed loans as collateral, reduces haircuts, and raises limit on unsecured bank bonds in collateral pool
Thailand’s central bank throws support line to SMEs
Businesses will be eligible for new financing facility and payment holiday
ECB temporarily relaxes NPL regulation
Central bank estimates lower capital requirements will release €120 billion for lending
Chinese banks probably concealing NPLs – Finnish paper
“Hidden NPLs” particularly common in large and well-capitalised banks, researcher argues
US leveraged lending rose further from 2018–19
Regulators urge banks to adopt risk-management measures to reflect changing market conditions
Kuwait’s central bank should relax rate caps – IMF
New legislation will encourage nationwide credit rating system, fund staff say
Better IT protected banks during financial crisis – IMF paper
NPLs were 10% lower in banks with stronger IT infrastructure, research shows
NPLs and cyber risks threaten Eastern Caribbean MU – IMF
Steps towards banking union should be put on hold until short-term priorities are addressed, says fund
ECB calls on Greece to redraft securitisation plans
Government should consider setting up new regulator for NPL-backed assets, says European Central Bank
MAS urges vigilance amid rising risks
MAS flags leverage risk in businesses tied to trade and property, as risks to global financial stability rise
China should bolster macro-pru framework – IMF paper
Lack of accurate credit information weakens macro-prudential measures, researchers say
RBI to resolve first non-bank under revised bankruptcy code
Move could set precedent for wider financial sector clean-up as fallout from liquidity crunch continues
Debelle analyses impact of mortgage arrears
Mortgage arrears are at historical low, Australian deputy says; trends in Western Australia could be informative in a downturn
Shared supervision can help avoid ‘capture’ – BoE paper
Dividing tasks across agencies can lead to better outcomes by avoiding “supervisory capture”
ECB gives eurozone banks more time to deal with new NPLs
Leading European lawmaker welcomes relaxation in ECB’s provisioning requirements
ECB warns Slovene government over draft law on loans
New measure could expose central bank to political risk and harm commercial lenders, ECB says
UAE central bank hails new financial stability remit
Financial stability report notes NPL levels have risen, but banks are also making larger provisions
Bank of Tanzania removes CEO of state-owned TIB Bank
The IMF has flagged the high levels of non-performing loans in the banking sector
Regulators need ‘stick and carrot’ to deal with NPLs – BoI paper
Optimal policy combines capital transfers and NPL disposals to wipe out owners’ rents – researchers
Mobile lending poses threat to financial stability – Kenyan governor
Njoroge says unregulated digital lenders could ‘bring down entire financial sector’
RBI steps up liquidity support amid government credit push
Government launches credit guarantees for public sector banks that lend to non-bank financial firms and announces fresh recapitalisation