Prudential Risk

Trading & Investment

CBIRC Authorises Insurers to Engage in Securities Lending

By Mark Johnston | 07/12/2021

The move will improve China’s short-selling mechanism, which will decrease market volatility, improve price discovery, reduce market risk, and create additional income for insurers.

Resolution & Recovery

FSB Presents Stock-take of Progress on Resolution Regimes

By Editors | 07/12/2021

The FSB says work is under way to build up external TLAC for the four Chinese G-SIBs, but that all other G-SIBs report that they already meet or exceed the final TLAC requirement.

Conduct, Culture & Accountability

China to Redeploy Retiring Execs from Established to Smaller FIs

By Darien Choong | 07/12/2021

Retiring senior professionals from large FIs will have the opportunity to serve as senior executives, independent directors or external supervisors at small and mid-sized banks and insurers.

Trading & Investment

China Limits Scope of Allowed Derivatives Activities at Banks

By Editors | 07/12/2021

Domestic financial institutions can only enter into cross-border OTC derivatives transactions if they are used for hedging purposes.

Cybersecurity

ASIC Flags Supply Chain Risk as Key Cyber Resilience Concern

By Sanday Chongo Kabange | 07/12/2021

Failure to invest in supply chain risk management could lead to significant consumer harm that might warrant ASIC investigation and action.

Credit Risk

MAS Urges Continued Prudence as Covid Uncertainties Linger

By Editors | 06/12/2021

The potential for further credit quality deterioration remains, especially if downside risks from the pandemic materialise and cause prolonged disruptions to economic activity.

Liquidity Risk

PBOC Cuts RRR for Banks as Evergrande Uncertainty Looms

By Editors | 06/12/2021

The cut, effective 15 December, will free up an estimated CNY 1.2 trillion in banking system liquidity to support the economy and reduce financing costs for businesses.

Credit Risk

Chinese Regulators Respond to Evergrande Default Fears

By Manesh Samtani | 06/12/2021

Government officials have been dispatched to China Evergrande Group to form a risk management committee to oversee risk management and strengthen internal controls.

Capital Adequacy

FSB Reports Further Progress on OTC Derivatives Reforms

By Editors | 05/12/2021

15 out of 24 FSB member jurisdictions have implemented higher capital requirements for non-centrally cleared derivatives, compared to just 8 in 2020.