Climate Risk

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 Adequacy

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.

Model Risk

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.

Structural Regulation

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.

Emerging Prudential Risks

China to Revise Central Bank Law This Year

27/05/2020

The revisions will likely expand the PBOC’s statutory responsibilities to include macro-prudential management, financial risk oversight, financial infrastructure and financial holding companies.

Credit Risk

Philippines Approves ‘Bad Bank’ Bill Amid Rising NPLs

27/05/2020

The ‘Financial Institutions Strategic Transfer Act’ allows the creation of asset management companies to buy up non-performing assets from financial institutions.

Trading & Investment

CORRECTED – HKEX to Launch New Derivatives Products

27/05/2020

Subject to regulatory approval, 37 new futures and options contracts based on MSCI Asia and emerging markets indices will be launched in Hong Kong.

Capital Adequacy

FSS Korea Directs Banks to Defer Business Expansion

27/05/2020

FSS governor Yoon Suk-heun said financial firms should brace for a “prolonged fallout of Covid-19” and focus on boosting internal reserves and loss absorbency capacity.

Anti-Money Laundering

Are Criminals Winning at Covid-19? Not Without a Fight

27/05/2020

Advances in digital identification technology can mitigate the unpleasant rise in pandemic-related financial crime. A top regulator, banker and lawyer join forces with Refinitiv to discuss how.