Prudential Risk

Market Risk

HKMA Emphasises PvP Settlement in Revised FX Guidance

By Manesh Samtani | 19/01/2022

Banks should aim to have all their FX trades become eligible for PvP settlement, while also encouraging counterparties to do the same.

Supervision & Enforcement

IOSCO Calls for Greater Use of Global Supervisory Colleges

By Editors | 19/01/2022

Global supervisory colleges can help strengthen cooperation between regulators, promote information sharing, and address market fragmentation.

Emerging Prudential Risks

Quantitative Easing Ineffective at Driving Firms to Invest

By Mark Johnston | 18/01/2022

Weaker firms respond to lower long-term yields by refinancing debt. Healthier firms tend to increase cash holdings and share buybacks.

Emerging Prudential Risks

CSRC Proposes Tougher Rules for Major Money Market Funds

By Editors | 18/01/2022

Money market funds with more than CNY 200 billion in net assets, or more than 50 million investors, will have to strengthen risk management and set aside additional risk reserves.

Operational Risk

Hong Kong Anti Covid Restrictions Take Toll on Banks

By Sanday Chongo Kabange | 18/01/2022

Banks including Goldman Sachs, Bank of America, Morgan Stanley and UBS are struggling to bring key executives into Hong Kong due to flight bans.

Cloud & Infrastructure

FSC Korea Reiterates Plans to Regulate Bigtech in Financial Services

By Sanday Chongo Kabange | 17/01/2022

The FSC will apply “same rules for same services” to ensure fair competition between bigtech firms and financial institutions.

Credit Risk

China Banks Restrict Lending to Local Govt Financing Vehicles

By Editors | 17/01/2022

Banks are trying to balance risks associated with the property sector against expectations from regulators that they finance acquisitions of real estate projects.

Capital Adequacy

UOB to Acquire Citi Consumer Banking Units in Four Markets

By Manesh Samtani | 17/01/2022

The transaction is estimated to reduce UOB’s CET1 ratio by 70 basis points to 12.8 percent, which is considered not material and “well within regulatory requirements”.

Structural Regulation

PBOC to Grant Local Authorities Greater Role in Financial Supervision

By Editors | 16/01/2022

New draft regulations open for consultation will strengthen the supervisory and risk disposal responsibilities of local governments within their territories.