Prudential Risk

    Resolution & Recovery

    China Prepares to Bail Out State-owned Enterprises, Banks

    By Editors | 27/07/2020

    State-owned China Reform Holdings has set up a bailout fund to help ensure SOEs can avoid bond defaults. Meanwhile, 18 provincial governments have approval to inject capital into banks.

    Credit Risk

    Bangladesh Bank Spares No Effort to Boost CMSME Lending

    By Editors | 27/07/2020

    In the past week, the central bank has sharply eased loan classification and provisioning rules, and offered credit guarantees, to try and address an unwillingness among banks to lend to small businesses.

    Credit Risk

    RBI Warns of Rising Bad Loans, While Urging Against Risk Aversion

    By Editors | 27/07/2020

    In a ‘very severe shock’ scenario, 23 banks would fail to maintain the 9% capital-to-risk weighted assets ratio, and the NPA ratio would reach 14.7%.

    Supervision & Enforcement

    CBIRC to Delegate Insurance Supervision to Local Authorities

    By Editors | 27/07/2020

    Local authorities will assume regulatory responsibilities over 64 property insurers, while the CBIRC will retain oversight for the 36 larger institutions.

    Capital Adequacy

    CFTC Adopts New Swaps Rules Limiting Extraterritorial Oversight

    By Editors | 27/07/2020

    Chairman Heath Tarbert said it is unnecessary for the CFTC to be “the world’s policeman” for all swaps, given that most G20 jurisdictions have adopted similar swaps regulations.

    Operational Risk

    SGX RegCo Addresses Financial Reporting Challenges Amid Covid-19

    By Editors | 26/07/2020

    SGX RegCo places emphasis on quality, reliability and appropriateness of interim financial reports, with particular regard to asset valuations and alternative performance measures used.

    Operational Risk

    Institute of Internal Auditors Offers Update to 3LoD Model

    By Editors | 26/07/2020

    The new ‘Three Lines Model’ is aimed at improving organisational structure to achieve better alignment, collaboration, and accountability among key players.

    Emerging Prudential Risks

    HKMA Aligns Benchmark Reform Guidance for Banks with BCBS

    By Editors | 26/07/2020

    HKMA’s new guidance covers issues with benchmark reform relating to the definition of capital, market risk, counterparty credit risk, liquidity and operational risk.

    Credit Risk

    APRA Allows Banks to Defer Property Collateral Revaluations

    By Editors | 26/07/2020

    APRA points to physical access barriers and a high degree of uncertainty that create challenges for banks in updating commercial property valuations.

    Liquidity Risk

    Australia Extends Early Super Access Deadline to Year-end

    By Editors | 24/07/2020

    As of 19 July, superannuation funds had paid out A$28bn to their members under the early release scheme.

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