Prudential Risk

Credit Risk

BOT to Offer Banks Incentives to Restructure SME Debt

By Pongnut Thanaboonchai | 17/08/2021

The BOT is considering reducing the amount of capital banks are required to set aside for NPLs as one possibility to incentivise debt restructuring.

Model Risk

CSRC Tightens Scrutiny on Snowball Derivatives Products – Report

By Editors | 17/08/2021

The CSRC has instructed brokerage firms to tighten risk controls on Snowball derivatives and ensure their risks are fully disclose to investors.

AI Risk & Governance

OECD Offers Policy Advice for Regulating AI in Financial Services

By Manesh Samtani | 17/08/2021

Among the recommendations are the introduction of suitability requirements for AI-driven financial services, and add-on capital buffers based on AI algorithms.

Structural Regulation

AMAC Halts Approvals of New Real Estate Funds

By Sanday Chongo Kabange | 16/08/2021

Private equity funds were among the last of the stable funding channels available to Chinese property developers amid recent regulatory pressure.

Trading & Investment

ETF Structure Proved Resilient to Market Stress: IOSCO

By Ranamita Chakraborty | 15/08/2021

An IOSCO study has helped to “alleviate concerns” about possible financial stability risks or fragilities relating to the ETF structure.

Capital Adequacy

EU Banks Using Window Dressing to Avoid G-SIB Surcharges

By Manesh Samtani | 13/08/2021

Several EU banks may be purposefully compressing their balance sheets at year-end to lower their G-SIB scores and the associated capital surcharges.

Emerging Prudential Risks

New Zealand Parliament Passes Reserve Bank Bill

By Sanday Chongo Kabange | 11/08/2021

The bill will strengthen the RBNZ’s decision-making, governance, independence and accountability, and change its funding model.

Capital Adequacy

APRA Finalises Revised Approach to Licensing New Banks

By Sanday Chongo Kabange | 11/08/2021

The new approach increases clarity around capital requirements at different stages for new entrants to the banking sector.

Structural Regulation

BNM Standardises Reference Rate Used in Floating-rate Loans

By Editors | 11/08/2021

The ‘Standardised Base Rate’ will replace the ‘Base Rate’ as the reference rate for new retail floating-rate loans from 1 August 2022.