Big Picture

Cybersecurity, geopolitical risks and Brexit were found to be the top three risks with possible systemic consequences for 2019, according to a new survey by DTCC.

Banks will face challenging conditions in 2019 due to moderating economic growth, slowing credit expansion and US-China trade tensions, but have adequate buffers against growing risks.

ISDA will likely look to the 'compounded setting in arrears rate' and the 'historical mean/median approach' to spread adjustment for RFRs that will replace discontinued IBORs.

The MAS financial stability review says asset quality is improving despite loan growth, and banks continue to maintain healthy provisioning and liquid assets "well above regulatory requirements".

ISDA, FIA, GFMA and EMTA have jointly published a briefing advocating an extension of the Benchmark Regulation transition period for critical and non-critical benchmarks.

The securities market is particularly vulnerable to cyber threats due to the large number of participants and infrastructures and the complex interactions involved.

The FSB found progress in OTC reform implementation on among 24 member jurisdictions, with great strides on trade reporting and higher capital on non-centrally cleared derivatives.

The central banks of Singapore, Canada and England jointly released a report discussing emerging opportunities for digital transformation in cross-border payments.

While long-term deleveraging and de-risking remain in place, China's authorities are likely to rely to a greater extent on public sector spending to support growth.

The FSB notes progress to strengthen major IBORs and identify RFRs and other alternative reference rates, highlighting actions taken in Australia, Hong Kong and Singapore.