Prudential Risk

Payments & Settlements

Laos Scraps Restrictions on Foreign Currency Loans

By Manesh Samtani | 26/06/2018

The 2016 restriction on lending in foreign currencies has been removed in order to allow banks to inject overseas-sourced funding into the country’s economy.

Emerging Prudential Risks

BIS Warns Of Vulnerabilities In Non-Bank Sector

By Garima Chitkara | 25/06/2018

BIS warns of changing bank business models that has increased the market share and interlinkages among non-bank firms, especially asset management firms that are increasingly vulnerable to interest rate and redemption risks.

Credit Risk

Audit Officials Find Illegal Lending at Chinese Banks

By Emma Zhou | 25/06/2018

ICBC, ABC and CITIC illegally extended loans to unqualified companies or industries, inflated the size of their deposits, engaged in illegal shadow-banking actives, and had shortcomings in their credit risk management.

Operational Risk

Further Delays at G-SIBs on Risk Data Compliance – BCBS

By Manesh Samtani | 25/06/2018

Progress report shows only only three G-SIBs have achieved full compliance with Principles for effective risk data aggregation and reporting; complexity and interdependence of IT improvement projects cited as main challenges.

Liquidity Risk

PBOC Cuts RRR to Stem Impact of US Trade Row

By Manesh Samtani | 25/06/2018

Of the funds released with the cut, ¥500b should support debt-to-equity swap programme to lower corporate debt ratios, ¥200b to be used for SME lending.

Conduct, Culture & Accountability

S. Korea Banks Face Loan Rate Manipulation Probe

By Manesh Samtani | 25/06/2018

FSS found thousands of irregularities in lending rate calculations including omission about income or collateral in credit evaluations, resulting in unfairly high lending rates.

Resolution & Recovery

The Greek Tragedy of Financial Regulation

By Peter Guy | 25/06/2018

The latest Eurozone bailout has effectively sentenced the country to a generation of vassalage, creating a financial serfdom. Weak growth and regulatory shortcomings will only invite the next crisis.

Credit Risk

Chinese Bank NPLs Rise Due To Stricter Loan Classification

By Garima Chitkara | 21/06/2018

Chinese regulators have been enforcing regulations more strictly to curb financial risk, causing bank NPL ratios to rise to 1.9% at end-May, up from from 1.75% at end-March.

Emerging Prudential Risks

Thailand, Japan to Cooperate on Banking Supervision

By Manesh Samtani | 20/06/2018

BOT and Japan FSA agreement sets out process they will follow to foster greater cooperation for information sharing, on-site visits, supervisory colleges and crisis management.