Capital / Liquidity

RBI Warns of Rising Bad Loans, While Urging Against Risk Aversion

27/07/2020

In a ‘very severe shock’ scenario, 23 banks would fail to maintain the 9% capital-to-risk weighted assets ratio, and the NPA ratio would reach 14.7%.

Market Infrastructure

CBIRC to Delegate Insurance Supervision to Local Authorities

27/07/2020

Local authorities will assume regulatory responsibilities over 64 property insurers, while the CBIRC will retain oversight for the 36 larger institutions.

Market Infrastructure

PBOC to Punish Banks Based on Green Finance Performance

27/07/2020

The PBOC’s branches will grade banks on their green finance performance quarterly starting in January 2021, using a set of quantitative and qualitative indicators.

Capital / Liquidity

CFTC Adopts New Swaps Rules Limiting Extraterritorial Oversight

27/07/2020

Chairman Heath Tarbert said it is unnecessary for the CFTC to be “the world’s policeman” for all swaps, given that most G20 jurisdictions have adopted similar swaps regulations.

Enforcement

Hong Kong Court Sentences Ex-HKMEx Chairman to Four Years Jail

27/07/2020

The 62-year-old Barry Cheung was found guilty a week earlier of conspiracy to defraud the SFC into letting HKMEx keep its licence to provide automated trading services in Hong Kong.

Securities / Derivatives

SGX RegCo Addresses Financial Reporting Challenges Amid Covid-19

26/07/2020

SGX RegCo places emphasis on quality, reliability and appropriateness of interim financial reports, with particular regard to asset valuations and alternative performance measures used.

Big Picture

Institute of Internal Auditors Offers Update to 3LoD Model

26/07/2020

The new ‘Three Lines Model’ is aimed at improving organisational structure to achieve better alignment, collaboration, and accountability among key players.

Market Infrastructure

HKMA Aligns Benchmark Reform Guidance for Banks with BCBS

26/07/2020

HKMA’s new guidance covers issues with benchmark reform relating to the definition of capital, market risk, counterparty credit risk, liquidity and operational risk.

Capital / Liquidity

APRA Allows Banks to Defer Property Collateral Revaluations

26/07/2020

APRA points to physical access barriers and a high degree of uncertainty that create challenges for banks in updating commercial property valuations.