Big Picture

Securities / Derivatives

Regulatory Change a Challenge for Hong Kong Fund Managers

By Editors | 10/06/2020

Overregulation is an issue for some fund managers in Hong Kong, but the industry is also calling for greater regulatory clarity around GBA initiatives and ESG standards, according to a KPMG-HKIFA survey report.

Capital / Liquidity

Credit Risk a Growing Threat in Hong Kong: Mazars

By Manesh Samtani | 02/06/2020

Banks need to be more agile in incorporating in their ECL model all latest reasonable and supportable information, including that which is forward-looking, says Pierre Latrobe.

Capital / Liquidity

Loan Payment Holidays Pose Banking System Risks: FSI Paper

By Editors | 01/06/2020

Delaying loan loss recognition too long may leave banks and supervisors with fewer options for dealing with future risks to the banking system, a new paper says.

Market Infrastructure

NGFS Publishes Climate Risk Best Practices of Supervisors, Banks

By Editors | 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.

Big Picture

Higher Skin-in-the-game Linked to Lower CCP Model Risk

By Editors | 27/05/2020

A new BIS paper finds that a higher amount of CCP skin-in-the-game is associated with more careful risk modelling and less frequent margin breaches.

AML / KYC

Companies Not Protecting Against Third Party Risk: Refinitiv

By Editors | 18/05/2020

43% of third parties do not receive due diligence checks, and 62% of respondents do not know the extent to which third parties are outsourcing work.

AML / KYC

FSI Takes Stock of Official Sector Response to Rising Financial Crime

By Manesh Samtani | 17/05/2020

There are trade-offs between expecting FIs to enhance or adjust their cyber resilience and AML frameworks, versus avoiding excessive burdens that could hinder the delivery of key financial services.

Market Infrastructure

CCP Margin Models May Need Fine-tuning: BIS Paper

By Editors | 15/05/2020

Some CCP margin models underestimate market volatility because they rely on a short period of historical price movements from tranquil times, the paper says.

Big Picture

BIS Calls for Global Cooperation to Mitigate ‘Green Swan’ Risks

By Manesh Samtani | 14/05/2020

More global coordination is needed to foster change in methodologies and mindsets to deal with global green swan risks, says a new BIS paper.