ESG / Sustainability

BOJ, FSA Highlight Ongoing Initiatives to Address Climate Risk

31/03/2021

Bank examinations will include assessments of efforts to address climate-related risks, and work is underway to identify possible approaches to climate-related scenario analysis.

Capital / Liquidity

HKMA Issues Guidance on Reporting ARR Positions in IRRBB Returns

30/03/2021

The guidelines say alternative volatility estimates may be used value new ARR options in cases where there is not enough implied interest rate volatility data.

Securities / Derivatives

Hedge Fund Collapse Sparks Billions in Losses for Banks

30/03/2021

The SEC, FSA, and FINMA are monitoring the situation, after the collapse of Archegos Capital Management left Nomura and Credit Suisse with billions in losses.

Enforcement

FCA, BOE Set Out Priority Areas for LIBOR Transition

30/03/2021

Supervisory tools may be used to address insufficient progress and poor risk management or governance.

Market Infrastructure

FMSB Issues Draft Standard on ‘Appropriate’ Use of Term SONIA

28/03/2021

The main use cases where a robust rationale may be identified for using Term SONIA in lending products include trade finance, working capital, and Islamic finance products.

Market Infrastructure

HKMA Releases Banks from 30 June LIBOR Transition Milestone

26/03/2021

International banks say prematurely restricting the issuance of LIBOR-linked contracts may result in fragmented markets.

Market Infrastructure

Continued LIBOR Use Presents ‘Safety and Soundness’ Risks

25/03/2021

ARRC will not be able to recommend a forward-looking SOFR term rate by mid-2021. New York has approved legislation to facilitate transition for tough legacy contracts.

Fintech / Regtech

Project Aurum: HKMA to Explore General Purpose CBDC

25/03/2021

Project Aurum will explore the benefits and challenges of different architectures for the distribution of a general purpose CBDC.

AML / KYC

First North Korean Set to Face US Money Laundering Charges

24/03/2021

Extradited to the US two years after his arrest in Malaysia, the North Korean national will face charges for money laundering, evading sanctions, and defrauding banks.