In particular, it focuses on the assessment of temporary regulatory relief provided to banks to prevent credit contraction. While certain measures are in line with international practice and the views of the Basel Committee on Banking Supervision, the IMF, and other relevant institutions, some tools should be implemented with caution given the long-standing issue of poor asset quality in the banking sector. The latter refers to the relief on recognition of credit impairment and loosened capital adequacy for certain risk exposures that will impact the resilience of banks.
Institutional Document
Published 30 October 2020