Prudential Risk

Supervision & Enforcement

Former Vietnamese Central Banker Sentenced To Three Year Jail Term

By Garima Chitkara | 04/07/2018

Former SBV deputy governor received a three year jail sentence for his role in a mismanagement and loan underwriting scandal that led to losses of $655 million at Vietnam Construction Bank

Emerging Prudential Risks

China Shadow Bank Risk On The Decline – Moody’s

By Garima Chitkara | 02/07/2018

Chinese banks are returning to conventional lending and away from shadow banking activities according to banking statistics released by Chinese regulators, says Moody’s Investors Services.

Credit Risk

India’s IDBI Bank to Receive Lifeline from State-run Insurer

By Garima Chitkara | 02/07/2018

India’s insurance regulator has approved the acquisition of a 51% stake in IDBI Bank by Life Insurance Corp, in a deal worth $1.9bn; The bank had more than a quarter of its loan book marked as non-performing at March 2018.

Supervision & Enforcement

India Cracks Down on Bank Auditors

By Garima Chitkara | 02/07/2018

RBI has introduced a framework to define lapses in bank auditor conduct and reporting as well as enforcement action to be taken as a result of such lapses.

Capital Adequacy

S. Korea Trials New Regulatory Framework For Financial Holding Firms

By Garima Chitkara | 02/07/2018

FSC has developed a new standard for gauging capital adequacy at South Korea’s financial conglomerates; The new metric ranks Samsung the highest and Hyundai the lowest – but still above levels that would require it to raise equity.

Credit Risk

RBI Report Paints Gloomy Picture for India’s Banking Sector

By Manesh Samtani | 02/07/2018

Stress tests indicate NPA ratios at Indian banks to fall to lowest level since year 2000; Public sector banks to be hit the hardest, with six expected to experience capital shortfall.

Conduct, Culture & Accountability

Communist Party Committees To Foster Risk Aversion at Chinese Banks

By Garima Chitkara | 28/06/2018

China’s regional and mid-tier banks are formally establishing Communist Party committees in support of the government’s bid to crackdown on excessive risk taking in the banking sector.

Capital Adequacy

Deutsche Bank Pressures Tied to Regulatory Woes

By Peter Guy | 28/06/2018

It’s impossible to separate Deutsche Bank’s ongoing regulatory compliance shortcomings from its business exigencies. The recent and unusual censure from the Federal Reserve highlights the bank’s inexorable pressures.

Cybersecurity

Worst-case Cyber Attack Losses Could Cost Banks Half of Profits – IMF

By Manesh Samtani | 27/06/2018

Extreme risk scenario threatening financial stability characterised by increases in attack frequency and interdependence, or occurrence of large magnitude events.