Big Picture

Thousands of US Banks are “Underwater” and “Potentially Insolvent”

07/05/2023

Report by Stanford Professor Amit Seru and a group of banking experts presents an analysis of US banks’ asset exposure to interest rate hikes and the implications for financial stability.

Capital / Liquidity

PacWest Bancorp Exploring Potential Capital Raise or Sale – Reports

04/05/2023

There is concern that PacWest might be the next bank to fail, though it is smaller than SVB and First Republic and has 75 percent of its deposits insured.

Capital / Liquidity

Capital Has Not Left Hong Kong’s Financial System: HKMA

04/05/2023

Deposits at Hong Kong banks grew by 1.4% in the year ending March 2023, despite some outflows from HKD assets in response to interest rate differentials.

AML / KYC

Sydney Roundtable: More AML Guidance Needed for Capital Markets

04/05/2023

Roundtable participants said there is often little attention being paid to money laundering risks by capital market practitioners in Australia.

Sanctions

EU to Extend Sanctions Regime to Cover Corruption

04/05/2023

The EU would be able to target serious acts of corruption worldwide with travel bans and asset freezes, similar to the US Magnitsky Act.

Capital / Liquidity

ESMA Follows Through with De-recognition of Indian CCPs

03/05/2023

So far Indian markets have not faced disruptions. This is attributed to the concessions provided by French and German regulators.

Capital / Liquidity

US Regulators Conclude Reviews into SVB, Signature Failures

01/05/2023

The Fed, FDIC and NYDFS say SVB and Signature Bank were mismanaged, but that regulatory and supervisory lapses also contributed to their failures.

Capital / Liquidity

JPMorgan to Assume First Republic Bank’s Deposits and Loans

01/05/2023

The FDIC will provide loss share agreements as well as $50bn in financing. The cost to the Deposit Insurance Fund is estimated at $13bn.

AML / KYC

SFC Chief Julia Leung Offers View Into 2023 Priorities

29/04/2023

Julia Leung said the SFC will issue the new virtual assets rules in May, and that it developing a free carbon emissions calculator tool to help SMEs in climate-related reporting.