Operational Risk

    News on frameworks, regulations, and major events related to risks arising from internal processes, systems failures, human errors, or external disruptions.

    Conduct, Culture & Accountability

    PBOC Raises Bar for Executives of Financial Holding Companies

    By Sanday Chongo Kabange | 05/11/2020

    Under the proposed rules, the PBOC will be able to sanction financial holding companies whose directors, supervisors, and senior officials do not meet the job requirements.

    Cybersecurity

    Fintech-related Regulatory Initiatives Accelerated by Covid-19

    By Editors | 03/11/2020

    Most regulators either accelerated or introduced new innovation initiatives in response to Covid-19. No such initiatives were cancelled, says a report from the World Bank and CCAF.

    Credit Risk

    RBI Instructs Lenders to Repay ‘Interest on Interest’ to Borrowers

    By Editors | 03/11/2020

    Interest charged on interest for certain loans will be repaid by lenders under a government scheme, regardless of whether the loans were under moratorium.

    Conduct, Culture & Accountability

    CBA to Pay Penalty for Increasing Problem Gambler’s Credit Limit

    By Editors | 01/11/2020

    ASIC launched civil proceedings against CBA in March alleging that the bank failed to take account of a notification by a customer that he was a problem gambler.

    Credit Risk

    APRA Updates Standard for Reporting Credit Exposures, Provisions

    By Editors | 28/10/2020

    The draft ARS 220.0 is intended to align with the updated Prudential Standard APS 220 Credit Risk Management, which will come into effect from 1 January 2022.

    Supervision & Enforcement

    Super Licensees Must Observe Controlling Stake Requirements: APRA

    By Editors | 23/10/2020

    Regulatory approval is required before a change in a superannuation licensee’s ownership occurs. Noncompliance may attract “severe penalties”.

    Liquidity Risk

    APRA Penalises Breach of Prudential Standard on Liquidity

    By Editors | 21/10/2020

    Bendigo and Adelaide Bank will have to apply a 10 percent add-on to the net cash outflow component of its LCR calculation until its shortcomings have been rectified.

    Cybersecurity

    RBNZ Consults on Draft Guidance on Cyber Resilience

    By Editors | 20/10/2020

    The guidance aims to raise awareness of, and ultimately promote, the cyber resilience of the financial sector, especially at the board and senior management level.

    Payments & Settlements

    Tokyo Stock Exchange Faces FSA Probe Over System Outage

    By Manesh Samtani | 20/10/2020

    Based on an on-site investigation and findings from JPX’s own investigative committee, the FSA will consider issuing a business improvement order.

    Capital Adequacy

    PBOC Issues Draft Rules ‘Fully Revising’ Commercial Bank Law

    By Editors | 18/10/2020

    The revisions will enhance governance, improve board and senior management accountability, strengthen capital and risk management requirements, and raise penalties for violations.

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