Borrowers in China are now faced with a clampdown as the banking watchdog sets oversight on how lenders should deal with the collateral pledged for loans.
The huge stock market volatility in China is partly a product of the fact 80% of investors are retail. Why companies were so happy to take bank funding in return for their stock needs to be examined.
Europe will delay the Basel III deadline for bank capital requirements for six months at least. Originally set to go live in January 2013, Europe now follows the US in postponing the regulations.
Dec 3, 2012
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IOSCO and the Basel Committee have proposed collateral-tasty requirements for non-centrally cleared derivatives trades. They are hopeful regulators across the globe will adopt the same standards to reduce regulatory arbitrage.