FSC and FSS Announce Regulatory Changes for Financial Sector Entities
FSS, a South Korean regulator, published a notice on revision of requirements in the context of domestic systemically important banks or D-SIBs. The comment period for this notice ends on June 08, 2020. Additionally, FSC Korea made announcements related to postponement of the implementation of margin requirements for non-centrally cleared OTC derivative transactions and extension of the best practice guidelines on supervision of financial conglomerates.
FSC Korea announced a one-year postponement of the implementation of margin requirements for non centrally cleared OTC derivative transactions to help ease compliance burdens on financial institutions amid the COVID 19 crisis. The revised deadline is September 01, 2021 for financial institutions with non centrally cleared derivatives of KRW 70 trillion or more and September 01, 2022 for financial institutions with non centrally cleared derivatives of KRW 10 trillion or more and less than KRW 70 trillion. FSC Korea also approved revisions to the best practice guidelines on supervision of financial conglomerates and decided to extend the implementation of these guidelines for another year from May 01, 2020 to April 30, 2021 The financial conglomerates will disclose their group-wide risks at the end of September 2020.
Keywords: Asia Pacific, Korea, Banking, COVID-19, Basel III, IFRS 9, OTC Derivatives, Margin Requirements, D-SIBs, Systemic Risk, Financial Conglomerates, Guideline, FSS, FSC
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