Prudential Risk

Emerging Prudential Risks

FSB Reports Decline in Shadow Banking Assets

By Nithya Subramanian | 20/12/2023

The NBFI sector recorded a 2.9 per cent fall in financial assets in the sector, attributed to higher interest rates.

Fraud, Scams & Cybercrime

Taiwan: Cathay United Bank Fined Over Misappropriated Client Funds

By Editors | 20/12/2023

Two employees were involved in the misconduct. The bank was fined and is being required to increase its operational risk capital.

Capital Adequacy

SFC Fines Brokerage for Breaching Financial Resources Rules

By Mark Johnston | 19/12/2023

Central Wealth Securities Investment made various accounting and calculation errors in its financial returns and had a liquid capital deficit for eight months.

Operational Risk

BNM Finalises Capital Rules for Operational Risk, CCP Exposures

By Sanday Chongo Kabange | 18/12/2023

BNM consulted on the new requirements late last year. The new requirements will take effect on 1 January 2025.

Resolution & Recovery

FSB Outlines 2024 Priorities on Resolution-related Work

By Editors | 18/12/2023

The FSB will explore the adequacy of public sector backstop funding mechanisms and ways for resolution authorities to respond to the speed of bank runs.

Liquidity Risk

HKMA Sets Expectations on Managing Risk, IRRBB, Liquidity

By Manesh Samtani | 17/12/2023

Banks should establish social media monitoring frameworks, develop plans to respond to negative publicity, and limit how much HTM securities are held as HQLA.

Credit Risk

BNM Sets Regulatory Requirements for BNPL Products

By Manesh Samtani | 17/12/2023

The policy prohibits “pre-approved” BNPL credit, requires affordability assessments to be performed, and limits the fees that can be charged.

Clearing & Post-Trade

Australia Proposes Bill to Reform Regulatory Regime for FMI Entities

By Manesh Samtani | 17/12/2023

The RBA and ASIC will gain enhanced regulatory powers over financial markets, CS facilities, derivative trade repositories, and benchmark administrators.

Credit Risk

Korea Relaxes FHC Rules on Lending to Overseas Subsidiaries

By Editors | 15/12/2023

The FSC said the amendments, effective on 1 January, will “contribute to revitalising the overseas expansion of Korean financial companies”.