Prudential Risk

Emerging Prudential Risks

PBOC Extends Deadline for New Asset Management Rules

By Lucy Zhang | 02/08/2020

The transitional period for new rules for the asset management sector will be extended by one year to end-2021, the PBOC said.

Credit Risk

China: NAFMII Proposes Rules for Trading Credit Default Swaps

By Editors | 31/07/2020

Credit default swaps and credit-linked notes will provide investors additional tools to hedge against bond defaults and other credit events.

Emerging Prudential Risks

Third Global Financial Crisis May Be Imminent: ex-HKMA Chief

By Sanday Chongo Kabange | 30/07/2020

Former HKMA head Joseph Yam worries that the world may slip into a third financial crisis due to insufficient liquidity and dwindling spending caused Covid-19.

Structural Regulation

Reserve Bank of New Zealand Bill Introduced in Parliament

By Editors | 30/07/2020

The Bill focuses on reforming RBNZ’s overall institutional, governance, accountability, and funding arrangements, effectively updating 30-year-old legislation.

Credit Risk

BNM: Banks Agree on Flexible Approach to Loan Repayments

By Editors | 29/07/2020

As the blanket loan moratorium announced in March is due to end, banks have agreed to provide borrowers various repayment flexibilities depending on their specific circumstances.

Credit Risk

BSP Excludes Market-making Activities from Single Borrower Limit

By Editors | 29/07/2020

Debt securities acquired by banks from market-making activities will be excluded from the single borrower’s limit computation for 90 calendar days from the time of acquisition.

Capital Adequacy

MAS Asks Singapore-headquartered Banks to Cap Dividends

By Editors | 29/07/2020

Locally-headquartered banks are asked to cap fiscal 2020 dividends as a pre-emptive measure to ensure sustained lending given “significant uncertainties” ahead.

Capital Adequacy

APRA Moderates Approach to Bank Dividends in New Guidance

By Editors | 29/07/2020

Banks should retain at least half of their earnings when making capital distribution decisions, which should be informed by regular stress testing to demonstrate ongoing lending capacity.

Operational Risk

FMSB Examines Remote Working Risks in FICC Markets

By Editors | 28/07/2020

FMSB has published a Spotlight Review on the risks of undertaking financial services activities through new working arrangements, and measures to mitigate these risks.