Prudential Risk

Credit Risk

CBIRC Issues Stricter Rules for Banks on Loan Classification

By Editors | 02/05/2019

The new rules broaden the range of assets banks have to classify. If more than 5% of a borrower’s loans are 90 days past due, all loans from that borrower will be classified as non-performing.

Supervision & Enforcement

FSS to Relaunch Inspections of Financial Firms This Month

By Editors | 02/05/2019

The FSS will look into corporate governance, internal controls and consumer protection practices at KB Financial Group, KB Kookmin Bank and KB Securities, among others.

Emerging Prudential Risks

APRA Revises Prudential Standard to Enhance Superannuation Outcomes

By Editors | 02/05/2019

The revisions will require superannuation licensees to review their performance, analyse member outcomes, and take action to address areas that require improvement.

Resolution & Recovery

Eight Jurisdictions Yet to Adopt Resolution Frameworks – FSB

By Garima Chitkara | 30/04/2019

Eight major jurisdictions are yet to adopt resolution planning. Further work is needed on resolution planning for D-SIBs and other banks, as well as on cross-border cooperation on bank resolutions.

Clearing & Post-Trade

SEBI Cuts Net Worth Requirements for Gift City Clearing Corporations

By Editors | 29/04/2019

SEBI slashes minimum net worth requirements for clearing corporations operating in India’s international financial services centre from 3 billion to 1 billion rupees.

Data Privacy

China National Credit System to Include Foreign Data

By Editors | 29/04/2019

Foreign workers in China will be required to submit their personal credit information, including from activities in other countries, to the national credit system in order to obtain loans.

Credit Risk

Bangladesh Bank Relaxes Loan Classification Rules

By Editors | 29/04/2019

From 30 June, loans will be classified as ‘bad’ only once they have been overdue for at least 12 months, compared to nine months previously, among other changes.

Custody & Infrastructure

SAFE to Pilot Blockchain Based Trade Finance Platform

By Editors | 26/04/2019

China’s foreign exchange regulator has developed an open blockchain platform to help address the inefficiencies of cross-border trade finance.

Credit Risk

HKMA, SFC Find Opaque Financing Practices at Mainland Owned Banking Group

By Editors | 25/04/2019

Coordinated inspections found that a licensed corporation owned by a subsidiary as well as a bank within a Mainland-based group had adopted “complex, opaque financing arrangements”.