Prudential Risk

Emerging Prudential Risks

FSB Plenary Highlights Continued Financial Stability Concerns

By Editors | 03/07/2022

The FSB expressed concerns over the outlook for financial stability, volatility in commodity markets, and strains in crypto-asset markets.

Liquidity Risk

APRA Concludes Post Implementation Review of LCR, NSFR

By Editors | 02/07/2022

The LCR and NSFR are operating effectively, but there are potential improvements that could be made to improve efficiency, APRA says.

Capital Adequacy

BCBS Issues New Consultation on Banks’ Cryptoasset Exposures

By Manesh Samtani | 01/07/2022

Total bank exposures to Group 2 cryptossets would be capped at 1% of Tier 1 capital. Banks would be permitted to recognise hedging for certain Group 2 cryptoassets.

Emerging Prudential Risks

SFC Reviewing Market Practices to Guard Against Risk

By Manesh Samtani | 30/06/2022

Reviews underway cover concentration risk in OTC derivatives markets, risk management at futures brokers, and block trading practices.

Resolution & Recovery

Another Australian Neobank Announces Decision to Close

By Manesh Samtani | 30/06/2022

The SME-focused Judo Bank is the only neobank in Australia which continues to run independently after listing on the ASX last year.

Resolution & Recovery

Foreign Bondholder Files Suit Against Sri Lanka Over Default

By Duruthu E Chandrasekera | 29/06/2022

Sri Lanka’s prime minister Ranil Wickremesinghe expects to have a debt restructuring agreement with the IMF in place by late July.

Structural Regulation

HK FRC Explores Joint Audit Inspections with Mainland Authorities

By Editors | 29/06/2022

Hong Kong’s Financial Reporting Council already has 13 cases involving mainland audit work papers, two of which have been concluded.

Cloud & Infrastructure

RBI Issues Draft Rules on Managing IT Outsourcing Risks

By Sanday Chongo Kabange | 28/06/2022

Regulated entities don’t require specific approvals to outsource IT services, but appropriate policies and a risk management framework must be in place.

Emerging Prudential Risks

BIS Warns Central Banks of Inflation Threat

By Editors | 28/06/2022

The BIS warns that the dangers of stagflation “loom large” due to lingering disruptions from the pandemic, the war in Ukraine, and soaring commodity prices.