Prudential Risk

Emerging Prudential Risks

Financial System Resilient but Concerns Remain – RBA

By JP Reimann | 17/04/2018

Australia’s Financial Stability Review says risks easing, financial system resilient; but dangers remain on household debt, weak risk control and poor culture at banks.

Operational Risk

Indian Banks Face “Serious Governance and Risk Issues” – S&P

By Garima Chitkara | 16/04/2018

In light of recent NPA and governance issues at large private banks in India, S&P says Indian banks need an overhaul to enhance risk culture and governance.

Liquidity Risk

China Restricts Borrowings, Suspends OTC Options to Curb Brokerage Risks

By JP Reimann | 16/04/2018

Central bank will cap outstanding balances of short-term financing tools at 60% of a brokerage’s net capital; cap to be adjusted every six months based on brokers’ liquidity profiles.

Resolution & Recovery

Japan, China Urge EU Regulators to Relax Foreign D-SIB Rules

By Manesh Samtani | 16/04/2018

Joint letter from Japan, China banking associations say €30bn IPU threshold will make provision of financial services in the EU unsustainable for member banks.

Credit Risk

RBI Fines IDBI Bank for Bad Loan Provisioning Failures

By Garima Chitkara | 13/04/2018

RBI fines state-owned lender IDBI Bank INR30 million for non-compliance with bad loan recognition and provisioning norms; ruling will not have a material impact on the bank, said IDBI.

Credit Risk

Sri Lanka Makes Credit Ratings Compulsory for Finance Companies

By Editors | 13/04/2018

Licensed finance companies are required to enter into agreement with reputed credit agencies to obtain ratings by 30 April.

Clearing & Post-Trade

Exempt Post-trade Risk Reduction Services from EMIR Clearing Obligations – ISDA

By Garima Chitkara | 12/04/2018

ISDA white paper touts compression and counterpart rebalancing as “crucial” post-trade risk management tools that should be exempt from clearing obligations under EMIR.

Emerging Prudential Risks

China to Introduce National Financial Database in Fight Against Systemic Risk

By Garima Chitkara | 12/04/2018

China looking to build a national database of financial products and institutions in order to improve monitoring and supervision and fend off systemic financial risk.

Clearing & Post-Trade

CPMI-IOSCO Publish Multi CCP Stress Testing Framework

By Editors | 12/04/2018

Framework supports stress tests examining potential macro-level impact of common stress event affecting multiple CCPs to gauge interdependencies between markets, CCPs and other entities.