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.

AML / KYC

Global AML, Sanctions Fines Topped $8bn in 2019: Fenergo

02/04/2020

Last year was the second-biggest year on record for fines against financial institutions for AML and sanctions violations, according to a new report from Fenergo.

RBI Grants Exemptions to Small Finance Banks

02/04/2020

Existing small finance banks will not need prior RBI approval to undertake non-risk sharing simple financial service activities or open banking outlets in unbanked rural centres.