Prudential Risk

    Payments & Settlements

    Sri Lanka Central Bank Asks Private Sector to Borrow Offshore

    By Ranamita Chakraborty | 12/06/2021

    A zero cost swap facility is being made available for private forms to convert foreign currency borrowings into domestic currency.

    Resolution & Recovery

    CBIRC Issues Final Rules on Resolution Planning for FIs

    By Editors | 12/06/2021

    Deposit-taking institutions, leasing companies, asset managers and insurers with assets exceeding a specified threshold are required to formulate recovery and resolution plans.

    Capital Adequacy

    HKMA Defers Implementation of Basel III Capital Standards

    By Editors | 11/06/2021

    Banks have an additional six months to implement the revised frameworks on credit risk, operational risk, output floor and leverage ratio. The market risk and CVA risk frameworks are also deferred.

    Structural Regulation

    Regulatory Harmonisation Critical to OTC Derivatives Reporting

    By Priya Kundamal | 11/06/2021

    The fragmentation of trade reporting rules and the lack of a common data set across jurisdictions hinders transparency and global risk monitoring, writes DTCC’s Priya Kundamal.

    Emerging Prudential Risks

    Korea to Require Lenders to Pay Into Microfinance Support Fund

    By Sanday Chongo Kabange | 11/06/2021

    Proposed revisions set the common contribution rate at 0.03 percent of the balance of household loans for each financial institution.

    Capital Adequacy

    BCBS Consults on Prudential Treatment of Cryptoasset Exposures

    By Manesh Samtani | 11/06/2021

    Bitcoin and other “Group 2 cryptoassets” will be subject to a 1250% risk weight to avoid exposing bank depositors and creditors to a loss.

    Resolution & Recovery

    RBI Adjusts Resolution Framework to Benefit More Borrowers

    By Ranamita Chakraborty | 10/06/2021

    More MSMEs, small businesses and individuals will be able to restructure their debt, a measure taken amidst the adverse impacts of India’s second Covid-19 wave.

    Climate Risk

    BOE Commences Climate Risk Stress Tests for Banks, Insurers

    By Ranamita Chakraborty | 10/06/2021

    The end result will be more robust management of climate-related financial risks across the sector, said BOE governor Andrew Bailey.

    Emerging Prudential Risks

    IMF Reaffirms Hong Kong Stability, Identifies Pockets of Risk

    By Manesh Samtani | 10/06/2021

    The IMF recommends enhancing monitoring of lending to Mainland China, increasing oversight over banking groups, and regulating mortgage lending by non-banks.

    Structural Regulation

    FSC Korea Grants Toss Bank Final Approval to Operate as Digital Bank

    By Manesh Samtani | 10/06/2021

    With the final approval, Toss Bank will officially launch as early as September, making it the third internet-only bank in the country.

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