Prudential Risk

Emerging Prudential Risks

Volcker Rule – Road to Reform or Ruin?

By Peter Guy | 11/06/2018

Proposed changes by the Trump Administration to the Volcker Rule are already controversial. Linking cause and effect to risk management have only resulted in an excessively complex regulation that is proving difficult to reform in a “too big to fail” industry.

Market Risk

RBI Continues to Allow Banks to Spread Bond Losses Over Four Quarters

By Garima Chitkara | 11/06/2018

RBI has allowed banks to spread bond trading losses incurred in the April-June quarter over four quarters, but changes rules on valuation of state government debt.

Emerging Prudential Risks

CBIRC, SFC to Cooperate on Cross Border Supervision

By JP Reimann | 11/06/2018

New MoU to facilitate information exchange in the interest of investor protection, promoting competence and integrity of regulated entities, market and financial integrity, and maintaining financial stability.

Resolution & Recovery

FSB Seeks Feedback on TLAC Implementation, Adequacy

By JP Reimann | 07/06/2018

Review focused on regulatory adoption, cross-border aspects of implementation, overall progress towards meeting TLAC requirements, instruments issuance and distribution, among others.

Liquidity Risk

The Philippines Adopts NSFR For Large Banks

By Garima Chitkara | 07/06/2018

Banks given six months starting 1 July to start reporting NSFR; banks unable to meet the ratio will need to submit funding plan to the central bank.

Resolution & Recovery

FSB Consults on Third Peer Review on Bank Resolution

By JP Reimann | 06/06/2018

Focus on D-SIBs and other banks that could be systemic in failure and are included in resolution planning at a jurisdictional level; feedback sought by 4 July.

Capital Adequacy

Sri Lanka State Banks Undercapitalised for Basel – Fitch

By Manesh Samtani | 05/06/2018

Large state banks short an estimated $120mn in capital, of which state banks account for 72%; government infusion may be needed to meet Basel III 2019 requirements.

Emerging Prudential Risks

China Resolves to Boost SMEs Financing to Mitigate US Tax Cut

By Garima Chitkara | 04/06/2018

Cabinet extends VAT exemption three more years for small firms, cuts reserve requirement at banks, commits to increasing financing options; PBOC reforms medium term lending facility to increase funding for SMEs.

Credit Risk

IFRS 9 to Cause Volatility in Singapore Bank Profitability – Moody’s

By Garima Chitkara | 04/06/2018

The adoption of Singapore’s equivalent of IFRS 9 will be neutral for bank capitalisation, but changing risk and macroeconomic conditions could lead to varying levels of provisioning, says Moody’s.