Prudential Risk

    PEPs & Sanctions

    China Approves Plan to Impose National Security Law in Hong Kong

    By Manesh Samtani | 28/05/2020

    The move could impact Hong Kong’s special trade status under US law, lead to sanctions against officials, and trigger a downgrade of the city’s credit rating.

    AI Risk & Governance

    Singapore to Develop Metrics to Assess Fairness of AI-driven Decisions

    By Editors | 28/05/2020

    UOB and Element AI will develop fairness metrics for credit risk scoring; HSBC, IAG Firemark Labs and Gradient Institute will develop fairness metrics for customer marketing.

    Capital Adequacy

    Taiwan Defers Basel III, Eases Provisioning Norms

    By Editors | 28/05/2020

    The FSC has also clarified its expectations on ECL estimates under IFRS 9 and reiterated its relaxation of the D-SIB surcharge requirement.

    PEPs & Sanctions

    US State Dept Declares Hong Kong No Longer Autonomous

    By Manesh Samtani | 27/05/2020

    The move puts at risk the special status under US law Hong Kong has enjoyed since 1992, jeopardising billions of dollars worth of trade and investment.

    Climate Risk

    NGFS Publishes Climate Risk Best Practices of Supervisors, Banks

    By Editors | 27/05/2020

    Most banks have undertaken an operational commitment towards greening their balance sheets, consider their actions to be part of their corporate social responsibility or risk mitigation measures.

    Capital Adequacy

    Japanese FIs to Be Granted Easier Access to State Aid

    By Editors | 27/05/2020

    Applicant financial institutions will no longer have to set profit targets as a condition for receiving state aid, and the 15-year repayment deadline will be scrapped.

    Model Risk

    Higher Skin-in-the-game Linked to Lower CCP Model Risk

    By Editors | 27/05/2020

    A new BIS paper finds that a higher amount of CCP skin-in-the-game is associated with more careful risk modelling and less frequent margin breaches.

    Emerging Prudential Risks

    China to Revise Central Bank Law This Year

    By Editors | 27/05/2020

    The revisions will likely expand the PBOC’s statutory responsibilities to include macro-prudential management, financial risk oversight, financial infrastructure and financial holding companies.

    Credit Risk

    Philippines Approves ‘Bad Bank’ Bill Amid Rising NPLs

    By Editors | 27/05/2020

    The ‘Financial Institutions Strategic Transfer Act’ allows the creation of asset management companies to buy up non-performing assets from financial institutions.

    Capital Adequacy

    FSS Korea Directs Banks to Defer Business Expansion

    By Editors | 27/05/2020

    FSS governor Yoon Suk-heun said financial firms should brace for a “prolonged fallout of Covid-19” and focus on boosting internal reserves and loss absorbency capacity.

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