Prudential Risk

Operational Risk

India’s FinMin Mandates Austerity for State-Run Financial Institutions

By Nithya Subramanian | 21/05/2026

The finance ministry has ordered public sector banks and insurers to cut travel and switch to EVs, following a prime ministerial call for austerity.

Emerging Prudential Risks

RBI Scrutinises Overseas Investments After Outflows Double

By Nithya Subramanian | 20/05/2026

The central bank is questioning firms on the commercial substance of foreign investments after outflows surged to USD 27 billion.

Structural Regulation

Australia Overhauls Foreign Investment Rules to Fast-Track Low-Risk Deals

By Sanday Chongo Kabange | 20/05/2026

The government has announced reforms to streamline approvals for low-risk investments while increasing scrutiny over sensitive sectors and national security risks.

Capital Adequacy

RBI Removes IFR Requirement for Commercial Banks

By Nithya Subramanian | 20/05/2026

The move allows banks maintaining market risk capital to discontinue the reserve and transfer existing balances, which can now be recognised as Tier 1 capital.

Structural Regulation

China Sets New Capital and Conduct Rules for Derivatives Dealers

By Mark Johnston | 20/05/2026

New measures establish a CNY 500 million net capital floor for dealers, introduce suitability and real-name account rules, and clarify the regulatory framework.

Conduct, Culture & Accountability

APRA Disqualifies Former Xinja Chair Under Accountability Regime

By Sanday Chongo Kabange | 20/05/2026

The six-year ban follows an investigation into undisclosed ‘side agreements’ that misrepresented the failed neobank’s capital position, marking the third such action against its former executives.

Credit Risk

Bangladesh Bank Relaxes Exposure Limits to Boost Credit Flow

By Nithya Subramanian | 20/05/2026

BB has suspended its tighter 2022 rules on loan concentration, citing the need to ease financing pressures on businesses and support international trade.

Structural Regulation

Australia Orders Chinese Investors to Divest Rare Earths Stake

By Sanday Chongo Kabange | 20/05/2026

The order is the latest in a series of government interventions to protect a critical minerals company from foreign control on national security grounds.

Emerging Prudential Risks

BOJ Warns of Systemic Risks from Investment Funds

By Nithya Subramanian | 19/05/2026

The central bank warned that growing exposure to hedge funds and private markets could amplify volatility and transmit global shocks into Japan’s financial system.