Emerging Prudential Risks

Bank of Korea Cuts Policy Rate to All-time Low

29/05/2020

Korea’s GDP shrank 1.4% year-on-year from January to March period, its biggest quarterly decline since the 2008 global financial crisis.

Market Abuse

SFC Bans Guosen Fund Manager for Violating Staff Trading Policies

29/05/2020

The fund manager concealed his beneficial interests, direct control and trading activities in securities accounts held at an external brokerage.

Cloud & Infrastructure

IOSCO Consults on Updated Set of Outsourcing Principles

28/05/2020

The principles include selection due diligence, information security, confidentiality issues, outsourcing risk concentration, and access to data, among others.

Structural Regulation

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 Adequacy

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.

AI Risk & Governance

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.

Cloud & Infrastructure

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 Adequacy

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.

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.