Prudential Risk

Emerging Prudential Risks

BOJ Revises Incentive Programme for Regional Banks

By Editors | 18/11/2021

The BOJ is amending the limits on the interest it pays under its programme to revitalise regional banks, announced last November.

Credit Risk

Malaysia to Enact New Consumer Credit Act in 2022 – Reports

By Sanday Chongo Kabange | 17/11/2021

The Consumer Credit Act will provide a regulatory framework for the issuance of consumer credit and strengthen oversight of non-bank credit providers.

Structural Regulation

BOT Sets Milestones for Reducing THBFIX Exposure in Derivatives

By Pongnut Thanaboonchai | 17/11/2021

By mid-2022, the total notional outstanding of THBFIX derivatives maturing after 2025 should be reduced by 50 percent compared to end-June 2021 figures.

Operational Risk

APRA Finalises New Standards on Insurance in Superannuation

By Ranamita Chakraborty | 16/11/2021

In preparation for the 1 July 2022 effective date, APRA “encourages trustees to reassess their insurance arrangements and strategy, risk and compliance frameworks”.

Emerging Prudential Risks

BCBS Consults on Principles for Banks’ Management of Climate Risks

By Editors | 16/11/2021

The principles offer guidance for banks on corporate governance, internal control frameworks, risk management, risk reporting, and scenario analysis, among other areas.

Conduct, Culture & Accountability

CBIRC Identifies Corporate Governance Deficiencies at Banks, Insurers

By Darien Choong | 16/11/2021

The CBIRC identified issues with shareholder behaviour, related party transactions, risk management systems, and internal audit, among other areas.

Capital Adequacy

Thailand Relaxes Policy on Bank Dividend Payments

By Pongnut Thanaboonchai | 16/11/2021

Banks will no longer be required to cap their dividends at the previous year’s payout ratio. However, they will still have a limit set at 50 percent of 2021 net profit.

Reporting & Disclosures

Australia Finalises Rules on Super Fund Portfolio Disclosures

By Editors | 15/11/2021

Morningstar has expressed concern that the rules do not require super funds to disclose specific stocks or bonds held in portfolios run by external asset managers.

Operational Risk

Taiwan Raises Risk Management Expectations for Futures Funds

By Darien Choong | 15/11/2021

Futures trusts will need to have dedicated risk management departments and be prohibited from conducting discretionary futures trades for clients.