Capital / Liquidity

The 6 percent GDP decline in the adverse scenario makes it the most severe scenario ever used in the EU-wide stress test.

Stablecoins must be fully backed, redemption at par must be available at all times, and issuers must be licenced. Algorithmic stablecoins will not be accepted.

The initiatives seek to mitigate risks related to financial stability, insolvencies, scams, and virtual assets, while also promoting innovation and fintech.

Banks would be able to sell stressed assets to special purpose entities that issue securitisation notes for investors to buy.

The RBNZ intends to progress with proposals made in its November 2021 consultation, with some amendments following stakeholder feedback.

FIs are asked to provide feedback and complete an accompanying Quantitative Impact Study reporting template.

The draft law contains an interim treatment for banks to apply a 1250% risk weight to their cryptoasset exposures until 31 December 2024.

Financial industry associations say a ban on commissions paid to financial advisers for selling financial products would harm consumers.

The OCC is looking to provide more transparency into its escalation framework for dealing with banks that become too big to manage.

Jurisdictions have not finished implementing Basel III reforms to mitigate spillovers between banks and non-bank financial entities.