Prudential Risk

Capital Adequacy

RBI Issues Revised Regulatory Framework for UCBs

By Editors | 08/12/2022

The four-tiered regulatory framework for UCBs will allow the RBI to prescribe more differentiated requirements based on size.

Emerging Prudential Risks

Geopolitical Risk Cited as Top Risk to Financial Industry: DTCC

By Editors | 08/12/2022

The top three threats in DTCC’s latest Systemic Risk Barometer survey were geopolitical risks & trade tensions, inflation, and cyber risk.

Emerging Prudential Risks

BIS Calls Out Stability Risks From ‘Hidden’ FX Swap Debt

By Editors | 08/12/2022

The BIS is concerned about high volumes of USD debt recorded off-balance sheets and FX settlement risk that remains “stubbornly high”.

Emerging Prudential Risks

Chinese, Hong Kong Firms Increasingly Setting Up in Singapore

By Editors | 06/12/2022

Up to 500 Chinese companies are estimated to have set up in Singapore this year. Meanwhile Hong Kong hedge funds are increasingly setting up operations in the city-state.

Market Risk

ISDA Calls for Adjustments to IMA Default Risk Charge Under FRTB

By Editors | 06/12/2022

New paper provides analysis in support of the removal of the 3bp PD floor set by the BCBS under the internal models approach for FRTB.

Credit Risk

CBIRC Orders Financial Leasing Companies to Eliminate Hidden Debt Risk

By Editors | 06/12/2022

The regulator said some financial leasing companies have been carrying out “credit-like” business in disguise, by buying low-value leased objects at high prices.

Climate Risk

Fed Board Proposes Climate Risk Framework for Large US Banks

By Editors | 06/12/2022

One governor said he disagrees with the premise that climate change poses a serious risk to large banks and US financial stability because stress tests show the banks are resilient.

Operational Risk

BNM Consults on Rules for Calculating Operational Risk Capital

By Editors | 06/12/2022

The rules are expected to come into effect on 1 January 2025. BNM has asked whether the proposed implementation date is feasible.

Conduct, Culture & Accountability

CBIRC Expands Corporate Governance Evaluation System for FIs

By Editors | 05/12/2022

The evaluation indicators were revised to increase focus on areas such as major shareholders, party leadership, shareholder equity, related transactions, and director nomination.