Prudential Risk

Emerging Prudential Risks

Indian Government Could Undermine Banking Sector Reforms – S&P

By Editors | 18/12/2018

Restrictions on the RBI’s authority to reform governance of public sector banks are seen as a weakness in its mandate and could undermine financial stability, says S&P Global Ratings.

Capital Adequacy

Post-Crisis Reforms Need Recalibration for Repo Markets – GFMA, ICMA

By Manesh Samtani | 17/12/2018

A new report calls on the FSB and BCBS to review and recalibrate post-crisis prudential standards in relation to their impacts on repo and securities lending markets.

Market Risk

HKMA Issues Revised SPM for Local IRRBB Implementation

By Editors | 17/12/2018

Authorised institutions should be ready to measure and report IRRBB exposures using the new standardised framework by 1 July 2019.

Credit Risk

Myanmar’s First Credit Bureau to Become Operational Within a Year

By Editors | 17/12/2018

Using software from Equifax, the new credit bureau will enable lenders to use credit histories to calculate bad debt risk and potentially lower the need for collateral.

Capital Adequacy

New Zealand Proposes to Nearly Double Bank Capital Requirements

By Editors | 17/12/2018

The proposal would set a Tier 1 capital requirement equal to 16% of risk-weighted assets for the big four banks, and 15% for other banks, up from 8.5% currently.

Credit Risk

KDIC to Enhance Defences Against Defaults by Financial Firms

By Editors | 14/12/2018

The Korea Deposit Insurance Corp will upgrade its risk assessment and monitoring system in 2019 to protect against the credit risks of financial firms.

Capital Adequacy

Basel Committee Consults on Leverage Ratio Disclosure Enhancements

By Editors | 14/12/2018

The Basel Committee on Banking Supervision seeks to revise leverage ratio disclosure requirements to address arbitrage and window-dressing by banks.editors

Credit Risk

Rural Banks in China Found Hiding Bad Loans – Report

By Editors | 14/12/2018

China’s National Audit Office has reportedly found that five financial institutions concealed a combined $189mn in bad loans by misclassifying them as performing.

Credit Risk

SEBI Allows Mutual Funds to Segregate Distressed Assets in Portfolios

By Editors | 13/12/2018

At its latest board meeting, SEBI approved a plan to allow mutual funds to create segregated portfolios for assets experiencing credit events, among a number of other proposals.