Big Picture

FSB Takes Stock of Covid-19 Lessons on Financial Stability

13/07/2021

Covid-19 may yet test the resilience of the global financial system, as lenders could still face additional losses as support measures are unwound, the FSB warns.

Capital / Liquidity

FSC Korea Designates D-SIBs, Non-holding Financial Groups

13/07/2021

The FSC has designated five bank holding companies and five banks as D-SIBs. Six conglomerates were designated as non-holding financial groups.

AML / KYC

MAS Proposes Additional AML/CFT Requirements for FIs

13/07/2021

MAS proposes requirements for dealings in precious stones and metals, transactions involving digital payment tokens, and customers that may be considered higher risk shell companies.

Fintech / Regtech

MAS Launches ‘Veritas Challenge’ to Strengthen Trust in AI

12/07/2021

MAS invites fintechs, solution providers and FIs to submit innovative solutions to help validate the fairness of AI solutions for selected banking use cases.

Capital / Liquidity

PBOC Cuts Reserve Requirement to Boost Bank Lending Capacity

12/07/2021

Market participants say that the earlier-than-expected RRR cut reflects policymakers’ concerns that banks may be under stress and facing higher NPLs.

ESG / Sustainability

G20 Endorses Use of Carbon Pricing Mechanisms, Incentives

12/07/2021

The use of carbon pricing mechanisms and incentives was included in the G20 communique among the set of tools to facilitate the transition to a more sustainable economy.

Market Infrastructure

RBI Urges Banks to Stop Using LIBOR, MIFOR

11/07/2021

FIs are asked to instead use ‘any widely accepted ARR’. Currently, there is no consensus on a new ARR for India. SOFR is widely expected to be accepted.

Capital / Liquidity

‘Noisy’ Stress Tests Can Promote Risky Bank Behaviour

11/07/2021

When supervisory stress tests are less accurate, capital surcharges and disclosure of outcomes can amplify risk-taking by banks, says a BIS working paper.

ESG / Sustainability

FSB Urges Greater Coordination on Climate-related Risks

07/07/2021

The interconnected nature of climate-related financial risks and the growing body of work to address them reinforce the need for coordinated action, the FSB says.