Prudential Risk

Cryptocurrency

Crypto Assets Come Under International Regulatory Scrutiny

By Garima Chitkara | 19/07/2018

The FSB submitted a report to the G20 detailing a framework to monitor potential contagion risks and wealth effects arising from crypto-assets.

Capital Adequacy

Sri Lanka Macroprudential Indicators Negative for Banks – Fitch

By Garima Chitkara | 18/07/2018

Sri Lanka’s “weak economic environment” and regulatory reforms may impact banks’ operating environment and credit profiles, says ratings agency Fitch.

Structural Regulation

Brexit Shifts Regulatory Powers to Continental Europe

By Peter Guy | 16/07/2018

The UK government’s Brexit white paper reveals disappointing support for London’s global role in financial regulations. London could be disintermediated as a financial centre.

Capital Adequacy

SEBI Amends Stress Testing Methodology for Commodity Derivatives

By Garima Chitkara | 12/07/2018

Minimum capital requirement for settlement guarantee fund has been fixed at INR100mn, as opposed to being determined through daily stress tests.

Liquidity Risk

Philippine NSFR Rules May Raise Funding Costs For Banks – Fitch

By Garima Chitkara | 12/07/2018

In a report by Fitch unit BMI Research, large banks in the Philippines may need to increase deposit taking and reduce long-term loans as a result of increased funding costs brought on by the new NSFR framework.

Capital Adequacy

New Zealand Tightens Rules on Calculating Bank Capital

By Garima Chitkara | 11/07/2018

RNBZ specifies additional restrictions on banks using internal models to calculate risk-weighted assets, as well as requirements to also use standardised models when reporting and for calculating operational risk.

Credit Risk

China Brokers Face Loan Risks Amid Market Sell-Off – Report

By Manesh Samtani | 11/07/2018

Equity-backed loans amount to 103% of net capital at Chinese brokerages; $2tn sell-off since January rapidly eroding value of collateral, reports Bloomberg.

Emerging Prudential Risks

PBOC Adviser Signals Easing in China Debt Crackdown

By Manesh Samtani | 11/07/2018

Regulators will avoid overusing “one-size-fits-all” policy in cutting debt levels, amid slowing market slump and economic growth, along with rising trade tensions and credit defaults.

Capital Adequacy

BCBS Publishes Revised Assessment Methodology For G-SIBs

By Garima Chitkara | 09/07/2018

New framework builds upon consultation last year and provides further guidance on the G-SIB assessment, reporting and higher loss absorbency surcharge. It will be adopted by 2021.