Prudential Risk

Model Risk

EBA Publishes Validation Requirements for Initial Margin Models

By Editors | 06/07/2023

The standards include a “pragmatic and simplified” supervisory procedure applicable to smaller counterparts as well as easier documentation, governance and outsourcing requirements.

Structural Regulation

More Foreign Banks in UK May Have to Convert Branches to Subsidiaries

By Editors | 06/07/2023

The BOE is considering reducing the thresholds for requiring foreign banks to set up subsidiaries, as part of a review prompted by SVB’s collapse.

Capital Adequacy

MAS Reports USD22.8 Billion Net Loss For FY2022/23

By Ranamita Chakraborty | 06/07/2023

MAS announced a net loss of SGD 30.8 billion (USD 22.8 billion), reflecting the effects of monetary policy tightening to bring down inflation.

Liquidity Risk

FSB, IOSCO Propose Tighter Rules for Open-ended Funds

By Manesh Samtani | 06/07/2023

The FSB and IOSCO are calling for greater and more consistent use of anti-dilution liquidity management tools in open-ended funds, such as swing pricing.

Liquidity Risk

Korea Relaxes Banking Rules to Boost Venture Investments, Corporate Lending

By Editors | 05/07/2023

The limit on bank acquisitions of unlisted equity securities is raised and the loan-to-deposit ratio requirement applied to foreign bank branches is relaxed.

Cybersecurity

APRA Reveals Early Results from Cybersecurity Assessments

By Sanday Chongo Kabange | 05/07/2023

APRA identified six common control gaps in the first tranche of CPS 234 assessments, and offers recommendations to address them.

Capital Adequacy

Cambodia Issues New Rules on Capital Adequacy, Credit Risk

By Sanday Chongo Kabange | 05/07/2023

The NBC says the new rules will incentivise lenders to release more loans to businesses and ensure finance is available at “reasonable interest rates”.

Credit Risk

Model Risk Heightened in Current Credit Environment: BCBS

By Manesh Samtani | 05/07/2023

Model and data limitations are making it more difficult for banks to capture credit quality deterioration, which may lead to higher future bank losses and capital inadequacy, the BCBS says.

Emerging Prudential Risks

China Holds $3tr in Unreported FX Reserves, says Former Treasury Official

By Editors | 04/07/2023

Former US Treasury official Brad Setser suggests China is concealing nearly half of its FX reserves within state-owned commercial and policy banks.