Anti-Money Laundering

Japan FSA Orders Seibu Shinkin Bank to Improve Loan Screening

27/05/2019

The bank reportedly extended loans to persons connected to ‘antisocial forces’, and potentially executed over 100 fraudulent real estate loans.

Structural Regulation

S. Korea FSC Rejects Remaining Internet-Only Bank Applicants

27/05/2019

The FSC will accept applications again during Q3 this year. Kiwoom Bank and Toss Bank can address their shortcomings and resubmit their applications.

Liquidity Risk

RBI Proposes Liquidity Risk Management Norms for NBFCs

27/05/2019

Under the draft rules, NBFCs will have to meet to a 60% LCR requirement from April 2020, increasing each year to the full 100% LCR in April 2024.

Structural Regulation

HK to Suspend Stocks on Disclaimer, Adverse Audit Opinions

27/05/2019

Trading in a Hong Kong listed company will be suspended if the auditor issues a disclaimer or adverse opinion for any financial year commencing on or after 1 September 2019.

Trading & Investment

Sino-Japan ETF Connect Launched; Six Cross-Border ETFs Approved

27/05/2019

The announcement follows an ETF Connectivity Agreement signed by JPX and the SSE last month, where both agreed to establish an system for cross-listings of ETFs.

Credit Risk

UPDATED – PBOC, CBIRC Take Control of Inner Mongolia Bank

27/05/2019

The PBOC and CBIRC have said they are taking control of Baoshang Bank, a small privately-owned bank whose owner disappeared two years ago.

Tokenisation

MAS Sandbox Admits SGX-Backed Digitised Securities Platform iSTOX

27/05/2019

From within the sandbox, iSTOX is currently onboarding the first batch of issuers and investors who will participate in issuance and trading of digitised securities starting in 4Q 2019.

Resolution & Recovery

FSB Seeks Feedback on Effects of Too-Big-To-Fail Reforms

27/05/2019

The FSB is asking if too-big-to-fail reforms have reduced the systemic and moral hazard risks associated with SIBs, and if they affect the functioning of overall the financial system.

AI Risk & Governance

BOJ Paper Considers Security Risks of Machine Learning Systems

27/05/2019

The paper classifies machine learning systems into 12 types and discusses the vulnerabilities, threats and corresponding countermeasures for each, focusing on the financial sector.