Prudential Risk

Operational Risk

Legacy Systems, Poor Data Quality Hindering BCBS 239 Adoption

By Manesh Samtani | 29/04/2020

Some banks have changed their BCBS 239 implementation strategies to comprehensively improve data quality, but this will take considerable time to resolve.

Supervision & Enforcement

Korea: FSS Confirms ‘Bad Bank’ Plan to Recover Lime Asset Losses

By Editors | 29/04/2020

FSS governor Yoon Suk-heun also pledged to establish a sustainable monitoring system, in light of events at Lime Asset Management and last year’s derivative product mis-selling at banks.

Operational Risk

CBIRC Instructs Banks to Halt Risky Crude Oil Products – Reports

By Editors | 28/04/2020

The verbal directions came nearly a week after an estimated $1.4bn in losses were recorded in a crude oil futures trading product sold by Bank of China.

Liquidity Risk

RBI Opens New Liquidity Facility for Mutual Funds

By Editors | 27/04/2020

The move follows Franklin Templeton’s decision to freeze and wind up six of its mutual funds amid intense redemption and liquidity pressures, prompting contagion fears across the sector.

Liquidity Risk

BOJ Ramps Up Support for Bond Markets, Corporate Japan

By Editors | 27/04/2020

The BOJ has removed its bond-buying cap, more than doubled its limit on corporate debt purchases, and expanded the collateral banks can pledge to include household debt.

Credit Risk

Principal Payment Deferment Available to Vulnerable Debtors: FSC Korea

By Editors | 27/04/2020

The programme is available through all FIs from 29 April until year-end, allowing vulnerable debtors to defer principal payment for 6-12 months.

Credit Risk

India Suspends Bankruptcy Law Provisions to Avert Insolvency Filings

By Editors | 27/04/2020

India’s Cabinet has approved the suspension of provisions that allow financial and operational creditors to initiate insolvency.

Emerging Prudential Risks

S. Korea Finalises Risk Management Rules for Private Equity Funds

By Editors | 27/04/2020

Private equity funds will have to undergo regular audits, adopt new valuation guidelines, conduct regular liquidity stress tests, and cap leverage at 400% of assets, among other measures.

Emerging Prudential Risks

Asian Pensions Under Pressure on Early Withdrawals

By AsianInvestor | 27/04/2020

The trade-off between the needs of today and the desires of tomorrow is challenging the retirement savings systems in Asia as Covid-19 forces early withdrawals.