Prudential Risk

Emerging Prudential Risks

BIS Warns of Hidden Financial Risks in AI Investment Boom

By Manesh Samtani | 03/07/2026

The BIS flags the AI investment boom as a key pressure point, citing risks of unsustainability and opaque, leveraged financing structures.

Credit Risk

Korea Tightens Mortgage Rules in New Property Hotspots

By Editors | 03/07/2026

Authorities have designated three new regulated areas, immediately slashing loan-to-value ratios to cool overheating, while clarifying rules for stress tests on household debt.

Credit Risk

Bangladesh Bank Unveils 18-Month Roadmap to Tackle Soaring NPLs

By Nithya Subramanian | 03/07/2026

The central bank has announced a multi-pronged strategy to address the country's high non-performing loans, including legal reforms and new provisioning standards.

Capital Adequacy

Indonesia OJK Approves Five-Bank Merger in Sumatra

By Editors | 03/07/2026

The merger will create a stronger regional lender with projected assets exceeding IDR 400 billion, supporting Indonesia's strategy to consolidate and strengthen its rural banking sector.

Trading & Investment

Korea FSS Orders Broker to Compensate Wrap Account Losses

By Editors | 02/07/2026

The ruling sets a key precedent, holding a firm liable for breaching fiduciary duties by using client funds to cover other accounts' losses.

Operational Risk

Korea Bans Banks from Passing Statutory Costs to Borrowers

By Editors | 02/07/2026

New rules effective 1 July prohibit banks from including certain mandatory contributions and levies in lending rates, aiming to lower borrowing costs for consumers.

Trading & Investment

China to Launch Sulphur Futures in Response to Price Volatility

By Mark Johnston | 02/07/2026

The new contracts are designed to provide a hedging tool for industry and enhance China’s pricing power for the key commodity.

Credit Risk

Asset Managers Reviewing China Bond Holdings Amid Ratings Scrutiny

By Mark Johnston | 02/07/2026

Regulators are tightening standards for top-rated corporate bonds, prompting asset managers to reassess their holdings for potential downgrade risks.

Emerging Prudential Risks

Australia's System Stress Test Reveals Bank-Superannuation Vulnerabilities

By Sanday Chongo Kabange | 02/07/2026

The inaugural test finds Australia’s financial system resilient but highlights concentration risks, mismatched assumptions, and the growing systemic role of superannuation funds.