Credit Risk

APRA: Banks May Amend Loan Terms Without Full Serviceability Test

07/05/2020

APRA says banks may allow borrowers to change their loan conditions without conducting a normal serviceability assessment, but that such an arrangement should not exceed 12 months.

Credit Risk

CBIRC Allows Banks to Offer Debt-to-equity Products to Investors

07/05/2020

Banks have already been using bond issuances and their own capital to carry out debt-to-equity swaps since 2016. They will now be allowed to offer these assets directly to investors.

Structural Regulation

Japan to Propose Easier Fintech Investment Rules for Banks – Report

07/05/2020

The proposal includes scrapping a requirement for bank holding companies to obtain FSA approval to acquire more than 15% of nonfinancial companies.

Fraud, Scams & Cybercrime

Singapore: HSBC Seeks Court Order to Replace ZenRock Management

07/05/2020

ZenRock is the latest Singapore commodities trader to come under scrutiny, for allegedly using the same cargo to secure financing from multiple banks.

Conduct, Culture & Accountability

SFC Fines Mega International Commercial Bank Over Sales Practices

07/05/2020

Mega did not properly assess clients’ investment objectives, risk tolerance levels and knowledge of derivatives, or ensure the suitability of its fund recommendations for clients.

Supervision & Enforcement

Australia: Pershing Pleads Guilty to Breaching Client Money Rules

07/05/2020

Pershing Securities Australia, a BNY Mellon subsidiary, is the first company in Australia to face criminal prosecution for breaching client money provisions.

Structural Regulation

US SEC Green-lights Launch of New Stock Exchange, MEMX

07/05/2020

Backed by some of Wall Street’s largest financial institutions, MEMX says it will offer a less expensive exchange model; fewer, less complex order types; and a basic market data feed.

Trading & Investment

DBS Prices Singapore’s First SORA-based Floating Rate Notes

06/05/2020

DBS has priced the first floating-rate notes referencing SORA, identified last August as Singapore’s alternative interest rate benchmark to SOR.

Market Risk

S. Korea Defers Initial Margin Requirements by One Year

06/05/2020

The move is in line with the BCBS-IOSCO decision announced in April, and will help to ease the compliance burden on financial institutions amid the Covid-19 crisis.