FSS published a notice with proposal regarding the enactment and revision of its regulation related to the capital treatment for short-term simple, transparent, and comparable (STC) securitizations. The consultation period ended on September 18, 2019.
The purpose of the stipulated provisions and revisions is to:
- Encourage a bank to strengthen responsible autonomous risk management through the approval, post-management procedures, and improvement of risk assessment criteria under the Internal Grade Act, which applies to the release of risk-weighted assets.
- Rationalize capital regulations, such as allowing credit risk reduction for unrecovered domestic bonds secured with superior bonds
- Reflect the criteria for the handling of regulatory capital for the BCBS-published standard on capital treatment for short-term STC securitizations
- Low risk-weight application for exposure, in which the underlying asset is superior and homogeneous and the relevant information is transparent and consistently managed and consistently.
Comment Due Date: September 18, 2019
Keywords: Asia Pacific, Korea, Banking, Securitization Framework, Regulatory Capital, STC Securitization, Risk-Weighted Assets, FSS
Previous ArticleFIN-FSA Publishes Regulations and Guidelines Related to CRR
EIOPA submitted—to the European Parliament, the Council of the European Union, and EC—its 2020, fifth, and last annual report on long-term guarantee measures and measures on equity risk.
The BIS Innovation Hub Swiss Centre, SNB, and the financial infrastructure operator SIX announced the successful completion of a joint proof-of-concept (PoC) experiment as part of the Project Helvetia.
EBA published the final draft regulatory technical standards for calculation of own funds requirements for market risk, under the standardized and internal model approaches of the Fundamental Review of the Trading Book (FRTB) framework.
EIOPA published discussion paper on a methodology for the potential inclusion of climate change in the Solvency II (sometimes also written as SII) standard formula when calculating natural catastrophe underwriting risk.
EU published, in the Official Journal of the European Union, corrigenda to the Directive and the Regulation on the prudential requirements and supervision of investment firms.
MAS proposed amendments to certain regulations, notices, and guidelines arising from the Banking (Amendment) Act 2020.
PRA published a statement that explains when to expect further information on the PRA approach to transposing the Capital Requirements Directive (CRD5), including its approach to revisions to the definition of capital for Pillar 2A.
RBNZ launched consultations on the scope of the Insurance Prudential Supervision Act (IPSA) 2010 and on the associated Insurance Solvency Standards.
SRB published the work program for 2021-2023, setting out a roadmap to further operationalize the Single Resolution Fund and to achieve robust resolvability of banks under its remit over the next three years.
EIOPA is consulting on the relevant ratios to be mandatorily disclosed by insurers and reinsurers falling within the scope of the Non-Financial Reporting Directive as well as on the methodologies to build these ratios.