Prudential Risk

Resolution & Recovery

China Proposes Establishment of Independent Deposit Insurance Agency

By Editors | 19/03/2019

The proposed agency – the first of its kind in China – could help failed banks to exit the market, limit depositor losses, and prevent contagion effects when serious credit risk events arise.

Capital Adequacy

RBI Releases Latest List of Indian D-SIBs

By Editors | 18/03/2019

SBI, ICICI Bank and HDFC Bank will remain India’s D-SIBs this year. The additional CET1 capital they need to hold will rise in April.

Credit Risk

China Banks Allowed Higher Bad Debt Ratios for ‘Inclusive’ Loans

By Editors | 18/03/2019

Regulators will tolerate higher NPL ratios on bank lending to small and micro companies, in a bid to improve access to financing for China’s ‘real economy’.

Resolution & Recovery

ISDA, FIA, IIF Publish CCP Resolution Incentives Analysis

By Garima Chitkara | 18/03/2019

ISDA, FIA and IIF members dispute the appropriateness of extending the NCWOL safeguard to equity holders, and debate the size of the “skin-in-the-game” tranche.

Emerging Prudential Risks

BCBS Sets Out Minimum Expectations for Banks Exposed to Crypto

By Editors | 18/03/2019

The minimum prudential expectations for banks exposed to crypto-assets relate to due diligence, governance and risk management, public disclosure and supervisory dialogue.

Cybersecurity

For Cybersecurity Best Practice, Look to the Finance Industry

By Pieter Danhieux | 14/03/2019

Security expert Pieter Danhieux discusses how firms can improve culture, training programmes and coding practices, to help the financial industry maintain leadership in cybersecurity.

Credit Risk

CSRC Bars Brokers from Facilitating ‘Shadow’ Margin Financing

By Editors | 14/03/2019

The CSRC is prohibiting brokers from any business that could facilitate informal margin financing, which it has flagged as a potential source of risk.

Climate Risk

Climate Change Poses Financial Stability Risk – RBA

By Editors | 14/03/2019

Financial stability could be put at risk from the physical impact of climate change and “an abrupt disorderly transition” to a low-carbon economy.

Liquidity Risk

British Banks Can Weather a No-Deal Brexit

By Manesh Samtani | 13/03/2019

While UK banks may not be fully ready to conduct business in EU jurisdictions, from a liquidity and capital point of view they appear well-positioned to weather a no-deal Brexit scenario.