Prudential Risk

Clearing & Post-Trade

ASX Commits to Providing Certainty on Stability of CHESS

By Sanday Chongo Kabange | 16/12/2022

ASIC and the RBA asked ASX to issue a special audited report detailing arrangements to ensure the stability, security and resilience of the existing CHESS system.

Market Risk

China Asks Banks to Absorb Selling Pressure in Bond Markets

By Editors | 16/12/2022

Banks are asked to absorb selling pressure caused by retail investors withdrawing funds from wealth management products and bond funds.

Credit Risk

Stress Eases in Chinese Offshore Debt Market – Reports

By Editors | 15/12/2022

Chinese offshore dollar bonds have ended 14 months of losses. China’s banks have vowed to extend at least USD 179 billion of financing help to developers.

Liquidity Risk

FSB to Revise Recommendations on Fund Liquidity Management

By Editors | 15/12/2022

Open-ended funds with illiquid assets should only be allowed to offer daily dealing if they use tools that pass on redemption costs to redeeming investors.

Liquidity Risk

RBA’s Term Funding Facility Didn’t Boost SME Lending as Intended

By Editors | 15/12/2022

Researchers said the TFF did not directly increase business lending, but it did reduce banks’ funding costs and led to lower interest rates throughout the economy.

Capital Adequacy

Global Banking System More Resilient After Basel Reforms: BCBS

By Editors | 15/12/2022

Banks that were more heavily affected by the Basel III reforms saw a greater reduction in their cost of capital, the BCBS said.

Conduct, Culture & Accountability

UK FCA Fines Metro Bank for Incorrect RWA Disclosure

By Sanday Chongo Kabange | 14/12/2022

The bank published incorrect information concerning its risk-weighted assets and did not disclose the error to investors despite knowing it was wrong.

Structural Regulation

China Files WTO Complaint Over Semiconductor Export Controls

By Editors | 14/12/2022

China is separately working on a CNY 1 trillion support package to expand domestic semiconductor production and research activities.

Credit Risk

CBIRC Issues Draft Rules on Country Risk Management

By Editors | 14/12/2022

The draft rules propose a unified standard for measuring country risk, as well as new provisioning requirements to align with new accounting standards.