China’s banking regulator has softened rules requiring lenders to set aside provisions against losses on bad loans, to encourage banks to provide more trustworthy assessments of their health. ft.com/content/4cc6ee…
"The new rules bring China closer to international standards. Most countries force banks to set aside provisions equal to between 50% and 100% of NPLs, according to research by Dong Ximiao, senior analyst at the Chongyang Institute for Financial Studies in Beijing. "
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"A structural model would be needed to evaluate how #macroprudential policies could be used to affect GaR. In aspiration, #macroprudential policies could aim to tighten financial conditions when conditional expected growth and GaR are relatively high ... " brookings.edu/wp-content/upl…
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"non-financial firms that exploit favourable global financing conditions to issue US dollar bonds and build cash balances are also those whose share price is most vulnerable to local currency depreciation" papers.ssrn.com/sol3/papers.cf…#LiabilityDollarisation