Capital Regulation

MAS published a draft large exposures framework in early 2018, trying to meet the BCBS timeline for adoption in January 2019. The final rules will now take effect in October next year.

The revisions may make it more difficult for banking groups to fund offshore business, and force them to restructure or reconsider the relative value of certain group operations.

Two of five US agencies have approved the Volcker Rule revamp, which aims to simplify its requirements and give banks more flexibility to trade.

A new report from S&P says insurers’ high exposure to banks and cross-holdings between banks could heighten systemic risk.

Financial institutions are encouraged to “actively carry out intellectual property pledge financing business” to provide greater support to innovative enterprises in their development.

The HKMA has adjusted its implementation schedule for the incoming requirements, taking into account the one-year phased extension announced by BCBS and IOSCO in July.

APRA wants to send a message to the insurance and super sectors that it expects the same high standards of risk management, including for non-financial risks, as it does for banks.

Banks are mandated to lend a portion of their funds to priority sectors. Allowing NBFCs to serve as middlemen for such lending provides them a liquidity backstop.

Covered supervised institutions have until 1 January 2021 to develop or revise their policies and procedures in accordance with the guidelines.

Significant variations in reporting practices in some cases do not meet the disclosure objective of IFRS 9, Moody's says, describing  HSBC Hong Kong and Hang Seng Bank as best in class.