Securities / Derivatives

SSE Considers Overhaul of Index Methodology – Report

28/05/2020

The SSE is considering using free float rather than total outstanding shares to calculate a company’s market value for the index, which would reduce the weightings of SOEs.

Capital / Liquidity

Using Capital Buffers Not As Easy As Hoped: APRA Chair

28/05/2020

Market expectations of bank capital levels and the knowledge that capital will eventually need to be rebuilt make it difficult for banks to dip into their buffers.

Fintech / Regtech

Singapore to Develop Metrics to Assess Fairness of AI-driven Decisions

28/05/2020

UOB and Element AI will develop fairness metrics for credit risk scoring; HSBC, IAG Firemark Labs and Gradient Institute will develop fairness metrics for customer marketing.

Fintech / Regtech

FSC Korea to ‘Reshape’ Regulations, Infrastructures to Boost Innovation

28/05/2020

In a welcome speech for Online Korea Fintech Week, FSC chairman Eun Sung-soo said the regulator will pursue innovation based on three main pillars.

Capital / Liquidity

Taiwan Defers Basel III, Eases Provisioning Norms

28/05/2020

The FSC has also clarified its expectations on ECL estimates under IFRS 9 and reiterated its relaxation of the D-SIB surcharge requirement.

Market Infrastructure

NGFS Publishes Climate Risk Best Practices of Supervisors, Banks

27/05/2020

Most banks have undertaken an operational commitment towards greening their balance sheets, consider their actions to be part of their corporate social responsibility or risk mitigation measures.

Capital / Liquidity

Japanese FIs to Be Granted Easier Access to State Aid

27/05/2020

Applicant financial institutions will no longer have to set profit targets as a condition for receiving state aid, and the 15-year repayment deadline will be scrapped.

Big Picture

Higher Skin-in-the-game Linked to Lower CCP Model Risk

27/05/2020

A new BIS paper finds that a higher amount of CCP skin-in-the-game is associated with more careful risk modelling and less frequent margin breaches.

Enforcement

Australia Eases Disclosure Rules to Prevent Opportunistic Class Actions

27/05/2020

Heightened uncertainty amid the Covid-19 crisis exposes companies to the threat of opportunistic class actions if their earnings forecasts are found to be inaccurate.