Prudential Risk

Liquidity Risk

IOSCO Affirms China, Japan have Completed Framework for MMF Reform

By Editors | 06/11/2017

China has implemented rules governing money market fund valuations, liquidity and stable net asset value since last report.

Resolution & Recovery

When Deposit Insurance Isn’t Insurance

By Peter Guy | 06/11/2017

Calls for EU wide deposit insurance are supposed to herald banking union. But regulatory enforcement, national policies and financial technology stand in the way.

AI Risk & Governance

FSB Reports on ‘Rise of the Financial Machines’, Backs Regtech

By Samuel Riding | 02/11/2017

Report suggests AI and machine learning could create new systemically important players, warns on opacity, audit difficulty.

Conduct, Culture & Accountability

Hong Kong Sets out Internal Audit Requirements for Authorised Institutions

By Editors | 02/11/2017

HKMA says audit functions must be separate from risk and compliance; will only allow outsourcing ‘under very limited circumstances’.

Emerging Prudential Risks

PBOC Targets ‘Shadow Financing’ by Tech Firms

By Editors | 01/11/2017

Central bank says many firms representing as technology providers are in fact providing finance for clients who can’t access conventional resources.

Liquidity Risk

Singapore Proposes Liquidity Risk Management Rules for Fund Managers

By Samuel Riding | 30/10/2017

MMFs will face more enforceable requirements than other portfolios, including rules on average maturity, 1-day/5-day redemption.

Emerging Prudential Risks

BCBS Gives Banks Just 2.5 Years to Work-out Step-in Risk

By Editors | 26/10/2017

Step-in risk guidelines due to be implemented by 2020 will require reporting rather than additional liquidity or capital charges.

KYC & CDD

RBI Confirms ID-Bank Account Link Compulsory, to Create Public Credit Registry

By Editors | 25/10/2017

Central bank says Aadhar cards must be linked to bank account; proposed credit registry to be open to ‘all stakeholders’.

Emerging Prudential Risks

Japanese Banks Overstaffed, Over-branched Amid Declining Profitability – BOJ

By Editors | 25/10/2017

Central banks also points to potential systemic risk from ‘common exposure’ as competition to lend money intensifies.