Prudential Risk

    Structural Regulation

    CBIRC Tightens Oversight on Structured Deposits Sold by Banks

    By Editors | 24/10/2019

    Banks can only offer structured deposit products if they have derivatives trading licences, and they must ensure the sales process is done in a “legally compliant manner”.

    Capital Adequacy

    Recession Fears Prompt Japan to Stress Test Major Financial Firms

    By Editors | 22/10/2019

    The BOJ and FSA will jointly coordinate stress tests on Japan’s three G-SIBs and four D-SIBs to assess how capital and liquidity could be affected if stocks fell and the yen spiked.

    Emerging Prudential Risks

    The Supervisory Answer to Hong Kong’s Worsening Economic Performance

    By Pierre Latrobe | 22/10/2019

    Pierre Latrobe at Mazars discusses the measures the HKMA has taken so far to strengthen its macroprudential supervisory toolkit and address potential risks to the wider financial system.

    Structural Regulation

    Korea to Lift Ban on Brokers Lending to Overseas Units

    By Editors | 21/10/2019

    Large brokerage firms will be allowed to extend loans to their overseas operations to better finance their global outreach.

    Capital Adequacy

    BCBS Releases 17th Progress Report on Basel III Adoption

    By Editors | 21/10/2019

    Since the previous report, member jurisdictions have made the most progress in adopting the NSFR, IRRBB, and large exposures framework.

    Credit Risk

    Korea to Impose Loan-to-Deposit Cap on Savings Banks

    By Editors | 21/10/2019

    The loan-to-deposit rate at savings banks will be limited to 110% starting from 2020, and further tightened to 100% in 2021. Currently, commercial banks already face the 100% limit.

    Emerging Prudential Risks

    AMAC Warns of Concentration Risk in China Funds Industry

    By Editors | 21/10/2019

    Over 20,000 private fund managers registered with AMAC are controlled by fewer than 2,000 people, prompting concerns of excessive concentration in the industry.

    Capital Adequacy

    APRA Proposes Banks Hold More Capital Against Large Subsidiaries

    By Editors | 18/10/2019

    APRA proposes to increase the amount of capital banks need to hold to support investments in large subsidiaries, such as their New Zealand units.

    Capital Adequacy

    Post Crisis Reform Implementation Has Progressed in 2019: FSB

    By Editors | 18/10/2019

    Regulators should lead by example to promote the timely, full and consistent implementation of remaining reforms to support a level playing field and avoid regulatory arbitrage, the FSB says.

    Trading & Investment

    BSP Reduces Reserve Requirement for Bank Bonds

    By Editors | 18/10/2019

    The move to lower is aimed at deepening the debt market and reducing the intermediation cost that bond issuers could pass on to bond holders.

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