Capital Adequacy

Using Capital Buffers Not As Easy As Hoped: APRA Chair

28/05/2020

Market expectations of bank capital levels and the knowledge that capital will eventually need to be rebuilt make it difficult for banks to dip into their buffers.

AI Risk & Governance

Singapore to Develop Metrics to Assess Fairness of AI-driven Decisions

28/05/2020

UOB and Element AI will develop fairness metrics for credit risk scoring; HSBC, IAG Firemark Labs and Gradient Institute will develop fairness metrics for customer marketing.

Cloud & Infrastructure

FSC Korea to ‘Reshape’ Regulations, Infrastructures to Boost Innovation

28/05/2020

In a welcome speech for Online Korea Fintech Week, FSC chairman Eun Sung-soo said the regulator will pursue innovation based on three main pillars.

Capital Adequacy

Taiwan Defers Basel III, Eases Provisioning Norms

28/05/2020

The FSC has also clarified its expectations on ECL estimates under IFRS 9 and reiterated its relaxation of the D-SIB surcharge requirement.

Climate Risk

NGFS Publishes Climate Risk Best Practices of Supervisors, Banks

27/05/2020

Most banks have undertaken an operational commitment towards greening their balance sheets, consider their actions to be part of their corporate social responsibility or risk mitigation measures.

Capital Adequacy

Japanese FIs to Be Granted Easier Access to State Aid

27/05/2020

Applicant financial institutions will no longer have to set profit targets as a condition for receiving state aid, and the 15-year repayment deadline will be scrapped.

Model Risk

Higher Skin-in-the-game Linked to Lower CCP Model Risk

27/05/2020

A new BIS paper finds that a higher amount of CCP skin-in-the-game is associated with more careful risk modelling and less frequent margin breaches.

Structural Regulation

Australia Eases Disclosure Rules to Prevent Opportunistic Class Actions

27/05/2020

Heightened uncertainty amid the Covid-19 crisis exposes companies to the threat of opportunistic class actions if their earnings forecasts are found to be inaccurate.

Emerging Prudential Risks

China to Revise Central Bank Law This Year

27/05/2020

The revisions will likely expand the PBOC’s statutory responsibilities to include macro-prudential management, financial risk oversight, financial infrastructure and financial holding companies.