Prudential Risk

Conduct, Culture & Accountability

Banks Making Progress on Compensation Practices: FSB

By Editors | 18/06/2019

Most banks now have compensation policies in place that reduce the potential for inappropriate risk-taking. The challenge now is to develop frameworks for assessing their effectiveness.

Credit Risk

SEBI Issues Stricter Disclosure Norms for Ratings Agencies

By Editors | 17/06/2019

Enhanced disclosure guidelines will require rating agencies to disclose default probabilities, factors that can impact ratings, and issuers’ liquidity positions.

Liquidity Risk

PBOC Extends Liquidity Support to Smaller Banks

By Editors | 17/06/2019

Liquidity will be provided by increasing rediscount and standing lending facility quotas, as concerns mount over the potential risks of smaller banks.

Supervision & Enforcement

APRA Uses New Directions Powers Against AMP Super

By Editors | 17/06/2019

AMP superannuation units have been ordered to make significant changes to their business practices, and to renew and strengthen their board.

Capital Adequacy

APRA Issues First Round Response to Bank Capital Consultation

By Editors | 14/06/2019

The new framework will impose higher capital charges by applying higher risk weights on mortgage loans that are seen as more risky, especially interest-only or investor loans.

Emerging Prudential Risks

Japan Delays Pension Reform Amid Political Fallout

By Editors | 13/06/2019

An FSA report which highlighted the insufficiency of Japan’s pension system has been withdrawn by the government ahead of a national election.

Conduct, Culture & Accountability

Singapore: Progressing the Culture and Conduct Risk Agenda

By Jeffrey Kupfer | 13/06/2019

MAS is equipping itself with advanced tools that will allow for culture and conduct to be evaluated in a more systematic way, say Jeff Kupfer and Stephen Scott at Starling.

Capital Adequacy

UPDATED – FSC Korea to Tighten Scrutiny of Financial Conglomerates

By Editors | 12/06/2019

FSC chairman Choi Jong-ku is concerned with excessive intra-affiliate transactions among non-financial affiliates and opaque capital injections at Korea’s family-run business conglomerates.

Structural Regulation

Australia: Think Tank Calls for Reduced Regulatory Red Tape

By Editors | 12/06/2019

Between five Australian regulatory agencies, over 75,000 pages of regulatory materials have been published, compared to only 9500 pages of enabling legislation.