Prudential Risk

Credit Risk

Korea FSS Asks Banks to Review Rate Setting Practices

By Editors | 22/11/2021

Banks are also asked to allow borrowers to demand rate adjustments when their wealth increases or credit ratings improve.

Credit Risk

More China SOE Bond Defaults Expected in 2022, says Moody’s

By Editors | 22/11/2021

Defaults by Chinese SOEs will increase in 2022, but Chinese authorities will intervene in situations with potential spillover risks.

Liquidity Risk

China Lifts Freeze on ABS Issuance by Property Developers

By Editors | 21/11/2021

Regulators reportedly plan to also relax restrictions on the size of new interbank bond issuance by “high quality” developers.

Cybersecurity

FS-ISAC Offers Recommendations for Cyber Defence in 2022

By Mark Johnston | 21/11/2021

APAC financial institutions face threats from ransomware attacks, supply chain risks, and the resurgence of trojans and DDOS attacks.

Liquidity Risk

APRA to Require Banks to Maintain Surplus Self-securitised Assets

By Editors | 21/11/2021

Banks will have to hold 30 percent of their LCR net cash outflows in self-securitised assets as contingency for periods of stress.

Capital Adequacy

Vietnam Banks Rush to Raise Capital for Basel Requirements – Report

By Ranamita Chakraborty | 19/11/2021

The SBV has approved proposals for several state-owned and private banks to increase their charter capital.

Emerging Prudential Risks

FSB Plenary Agrees Work Programme for 2022

By Manesh Samtani | 18/11/2021

The programme includes work around the response to Covid-19, NBFI resilience,  crypto/stablecoin/DeFi risks, climate risk, and the post-2008 crisis reforms.

Capital Adequacy

Sri Lanka Budget Imposes Heavy Burden on Financial Industry

By Duruthu E Chandrasekera | 18/11/2021

Sri Lankan bankers estimate that nearly 50 percent of the proposed LKR 304 billion in the budget will come from the financial services industry.

Emerging Prudential Risks

China Tightens Rules on Special Purpose Bonds, Use of Proceeds

By Darien Choong | 18/11/2021

SPB proceeds must be used strictly in accordance with the purposes disclosed in the prospectus. Any variations must be approved and properly disclosed.