Changes to proposed capital rules urged
LONDON • Global banking regulators need to make sweeping changes to proposed rules to protect European Union lenders against a spike in capital requirements, said Mr Valdis Dombrovskis, a European Commission vice-president, yesterday.
He said the Basel Committee on Banking Supervision should rework planned restrictions on how banks use internal models to estimate risks from real estate loans, as well as corporate and infrastructure lending.
Banks have warned that the proposals on how they assess credit, operational and market risk would lead to hundreds of billions of dollars in additional capital charges. The planned introduction of capital floors cap the benefit banks gain by using their own models, compared with a formula set by regulators.
CIMB gets licence for Viet subsidiary
HANOI • Vietnam's central bank yesterday granted Malaysia's second-biggest bank - CIMB Bank Berhad - a licence to open a 100 per cent foreign-owned bank in Vietnam, the State Bank of Vietnam said on its website.
The newly established bank will have a registered capital of 3.2 trillion dong (S$195.1 million) and can operate for 99 years, said a central bank statement.
London office value to fall by up to 30%
LONDON • Central London's best offices may lose as much as 30 per cent of their value by the end of next year, before the United Kingdom bounces back to beat continental Europe for the rest of the decade, said Deutsche Bank. A fall in UK commercial property values will accelerate next year, its asset management unit said yesterday in a report .
The business districts are among the most vulnerable due to rising supply, high rents and the risk of reduced EU market access after the Brexit vote, said the report.