Enforcement

CSRC Opens Investigation into Fraud at Coffee Chain

06/04/2020

The chief operating officer of Nasdaq-listed Luckin Coffee, along with his employees, are said to have fabricated about $310mn worth of sales transactions.

Capital / Liquidity

BCBS Issues Guidance on Treatment of Loans Under Relief

05/04/2020

IFRS 9 should be applied flexibly rather than mechanistically when estimating ECL, and payment moratorium periods can be excluded from the counting of days past due.

Market Infrastructure

Japan Lacks Consensus on LIBOR Replacement – Report

05/04/2020

About 57% of Japanese banks say TIBOR should be used, while about 70% of companies prefer to use forward-looking term rates based on TONAR.

Capital / Liquidity

HKMA Frees Up Regulatory Reserves, Liquidity Buffers for Banks

05/04/2020

Regulatory reserves held against possible credit losses will be reduced by half. Banks are encouraged to use liquidity buffers built up under the LCR and LMR regimes.

Capital / Liquidity

PBOC Cuts Reserve Requirements for Small, Mid-sized Lenders

05/04/2020

The move will free up a total 400 billion yuan at small and medium-sized lenders, allowing them to provide additional financing to SMEs.

Capital / Liquidity

BCBS, IOSCO Extend Initial Margin Deadlines by One Year

05/04/2020

With the extension, phase 5 implementation will take place on 1 September 2021 and phase 6 implementation on 1 September 2022.

AML / KYC

FATF Re-rates US as ‘Largely Compliant’ on CDD Measures

03/04/2020

The US is now compliant on 9 FATF Recommendations, largely compliant on 22, partially compliant on 5, and non-compliant on 4.

Big Picture

Outlook on 14 APAC Banking Systems is Negative: Moody’s

03/04/2020

Coronavirus-related disruptions will weaken the operating environment and weigh on asset quality, despite policy measures to help mitigate the effects on banks.

Capital / Liquidity

New Zealand Banks Agreed to Suspend Dividends: RBNZ

03/04/2020

Banks have also agreed to not redeem non-CET1 capital instruments, while the RBNZ works to launch a new 3-year funding scheme by May.