Emerging Prudential Risks

FSB Updates G20 on Coordinated Response to Covid-19

14/04/2020

Since mid-March, FSB members have reported about 850 discrete actions to address the financial and economic fallout related to Covid-19.

Structural Regulation

China’s Top Two Brokerage Firms Explore Merger – Report

14/04/2020

A merger between Citic Securities and CSC Financial would create a $67bn investment bank, surpassing the market cao of most other foreign competitors.

Conduct, Culture & Accountability

ASIC Shifts Focus to Ensure Market Integrity, Protect Consumers

14/04/2020

Covid-19 has raised the risk of significant consumer harm and serious breaches of financial services laws, says ASIC chair James Shipton.

Stablecoins

FSB Offers Recommendations on Regulating Global Stablecoins

14/04/2020

The consultative report proposes 10 high-level recommendations for jurisdictional authorities to advance consistent and effective regulation and supervision of global stablecoin arrangements.

Trading & Investment

China Opens Treasury Bond Futures Market to ICBC, BOC, BoCom

13/04/2020

Participation by the three banks in the treasury bond futures market will improve liquidity, enhance price discovery, and create a more meaningful yield curve.

Liquidity Risk

ISDA, IIF Warn G20 of Acute USD Shortage in Emerging Markets

13/04/2020

US dollar shortages could constrain policy responses aimed at cushioning emerging market economies from the Covid-19 shock.

Trading & Investment

Short Selling May Help Mitigate the Effects of Covid-19 Crisis

13/04/2020

ISLA’s Council for Sustainable Finance says short selling can be a “positive mechanism”, and banning it can harm price discovery and liquidity.

Credit Risk

S. Korean Regulators Urge Flexible ECL Approach During Covid-19

13/04/2020

South Korean regulators are advising companies and auditors to consider government relief measures as risk-reducing when determining expected credit losses.

Liquidity Risk

BSP Announces New Measures to Support Domestic Liquidity

13/04/2020

The BSP will expand the eligible securities it can purchase in the secondary market to include all peso-denominated government securities, rather than just those that are highly traded and liquid.