Prudential Risk

Structural Regulation

Malaysia Scraps GST on Banking Products

By Manesh Samtani | 03/06/2018

Effective 1 June, Malaysian banks will impose a zero percent GST on all banking products and services, previously subject to 6% GST.

Structural Regulation

HKMA Finalises Virtual Bank Rules, Applications Now Open

By JP Reimann | 01/06/2018

Regulator publishes final guidelines but no change in capital requirements; companies seeking inclusion in first batch of virtual bank applications can apply by 31 August.

Credit Risk

Moody’s Takes Ratings Actions on Nineteen Chinese Banks

By Garima Chitkara | 31/05/2018

Banks like Bank of China, Agriculture Bank of China, BOCOM and ICBC received upgrades on the back of an upgrade to China’s macro profile.

Emerging Prudential Risks

PBOC Launches Financial Statistics Inspections at Banks, NBFIs

By JP Reimann | 30/05/2018

Six-month central bank inspections to focus on quality of financial information as part of plan to unify statistical management operational mechanisms.

Credit Risk

China Allows Non-banks to Sell Bad Debt Overseas

By Manesh Samtani | 29/05/2018

SAFE also simplified the process for transferring NPLs to foreign investors for non-banks; previously only banks were allowed to sell bad debt to foreign investors.

Liquidity Risk

Philippines Further Reduces Reserve Requirements

By JP Reimann | 28/05/2018

The 100 basis point RRR reduction is expected to help facilitate healthy price discovery on the cost of funds in the financial system.

Capital Adequacy

BNZ Restates Capital Adequacy Ratios Due to Data Errors

By Garima Chitkara | 28/05/2018

BNZ reported a 34 basis point overstatement of its capital adequacy ratio in its most recent quarterly earnings due to data collection error, marginal overstatement of capital adequacy due to mistakes in collateral value calculation.

Market Risk

FRTB – Ending or Evolving Trading Culture

By Peter Guy | 28/05/2018

FRTB will force banks to change their operating models, bringing them out of product and trading desk silos. Bank trading culture and the trading desk concept may need to evolve to accommodate a wider picture of risk taking.

Data Privacy

China’s First Private Credit Scoring Firm Starts Operation

By Karen Chiu | 25/05/2018

Baihang Credit Scoring has become the first private credit-scoring firm in China, licensed by PBOC and backed by NIFA as well as 8 credit firms including Tencent Credit and Alibaba’s Sesame Credit.