Prudential Risk

Emerging Prudential Risks

FSB Adjusts Timelines to Implement Recommended SFT Haircuts

By Editors | 22/07/2019

The FSB has adjusted the implementation timelines for its framework recommendations for haircuts on certain non-centrally cleared securities financing transactions to align with Basel III.

Credit Risk

SEBI Tightens NPA Disclosure Requirements for Listed Banks

By Editors | 21/07/2019

Listed banks will have to make disclosures if the additional provisioning for NPAs assessed by RBI exceeds 10% of reported profit, compared to 15% previously.

Resolution & Recovery

China Enhances Market Exit Mechanism for Failing Financial Institutions

By Editors | 18/07/2019

China currently lacks smooth market exit channels, reflected in insufficient supporting measures and high exit costs for financial institutions in distress, said an NDRC spokesperson.

Supervision & Enforcement

APRA Set for Dramatic Overhaul in Response to Capability Review

By Editors | 18/07/2019

Among the review’s recommendations are proposed veto powers to prevent the appointment or reappointment of “inappropriate” directors and senior executives at regulated entities.

Credit Risk

China Issues New Rules for Distressed Asset Fund Managers

By Editors | 17/07/2019

Under the new rules, local AMCs must price bad assets fairly and are prohibited from setting buyback terms in acquisition contracts to help financial institutions cover up bad assets.

Conduct, Culture & Accountability

Over 35,000 Complaints Received in Six Months: AFCA

By Editors | 17/07/2019

Over 60% of the complaints have been resolved, resulting in A$83mn in settlements. More than one-third of complaints were directed at banks.

Liquidity Risk

Singapore Can Withstand Severe Adverse Shocks: IMF

By Manesh Samtani | 17/07/2019

The IMF says Singapore’s financial system would continue to be resilient even under very adverse scenarios, but that foreign currency liquidity risk needs to be addressed.

Capital Adequacy

HKMA Asks Banks to Prepare Systems for Revised Leverage Ratio

By Editors | 15/07/2019

Both the revised leverage ratio treatment of client cleared derivatives and the revised disclosure requirements will come into effect in Hong Kong on 1 January 2022, in line with the BCBS timetable.

Credit Risk

ASIC Defends Responsible Lending Guidance

By Editors | 11/07/2019

ASIC says the proposed responsible lending guidance is not about increasing requirements; rather, it seeks to clarify and update guidance on existing requirements.