Prudential Risk

Payments & Settlements

US Move to T+1 Settlement Poses Systemic Risk to Europe

By Mark Johnston | 20/03/2024

EFAMA says in a policy paper that the US move to a T+1 settlement cycle could dmea European fund managers would be unable to meet CLS cut-off times.

Capital Adequacy

RBNZ Assesses Initial Impacts of New Bank Capital Framework

By Manesh Samtani | 20/03/2024

All NZ banks met their capital requirements over the previous two years. Costs of capital broadly in line with initial estimates. No evidence of financial market disruptions.

Cybersecurity

FSS Korea Unveils New Initiatives to Boost Industry’s Cyber Resilience

By Editors | 19/03/2024

The FSS will establish an “autonomous security system” that FIs will be able to use to conduct IT audits and self-inspections to identify security threats.

Emerging Prudential Risks

BOJ Raises Interest Rates for the First Time in 17 Years

By Editors | 19/03/2024

The BOJ also abolished its yield curve control policy, which it has used since 2016 to cap the yields of 10-year JGBs.

Resolution & Recovery

FSB Updates Guidance on Operational Continuity in Resolution

By Manesh Samtani | 19/03/2024

A supplementary note was added to address today’s dependencies on third-party providers for critical shared services, and the digitalisation of such services.

Credit Risk

RBI Tightens Scrutiny of High-Risk Lending Models

By Ajoy K Das | 19/03/2024

The RBI is scrutinising mortgage top-up loans, algorithm based credit models, and co-lending arrangements.

Anti-Money Laundering

China: Police Take “Criminal Coercive Measures” Against Zhongzhi Execs

By Mark Johnston | 18/03/2024

A criminal probe against Zhonzhi  was launched in November 2023 after the company, which controls several asset and wealth management firms, said it was “severely insolvent”.

Credit Risk

APRA Paper Offers Justification for Lower IRB Risk Weights

By Manesh Samtani | 18/03/2024

APRA explains why the difference in risk-weights for housing lending between IRB and standardised banks is appropriate.

Market Risk

HKMA Finalises Rules on Market Risk, CVA Risk Capital

By Editors | 18/03/2024

The HKMA said the revised market risk and CVA risk capital frameworks will come into effect “on a day to be appointed”, but intended to be 1 January 2025.