FSB published an update on the meeting of its Regional Consultative Group (RCG) for Asia. BNM hosted this meeting of the RCG in Kuala Lumpurm, with the key topics of discussion being cross-border resolution, effects of G20 reforms, fintech and regtech, and efforts to reduce misconduct risk.
Members of the RCG for Asia began by considering vulnerabilities in the global financial system, noting in particular the high levels of debt. They examined the reasons and possible implications of the increasing share of cross-border lending to Asia, which is being undertaken by Asian banks. Members received an update on the current and planned activities of FSB, which are intended to reinforce the G20 objective of strong, sustainable, and balanced growth. Another topic of consideration was the resolution of large systemic banks and other financial institutions, particularly in a cross-border context. RCG members discussed challenges being faced in the implementation of the FSB key attributes of effective resolution regimes for financial institutions, in addition to the information-sharing arrangements and other cross-border arrangements.
Members turned their attention to the regulatory treatment of sovereign exposures and the effects of G20 reforms. They discussed the role that sovereign exposures play in the banking system, financial markets, and the broader economy, along with the risks that they may pose. Members discussed the role that fintech and regtech can play in improving the effective implementation of anti-money laundering and countering the financing of terrorism (AML/CFT) measures. They discussed steps that the official sector could take to promote innovation that mitigates money laundering and terrorist financing risks. The meeting concluded with a discussion on reducing the risk of misconduct. Members discussed the extent of involvement of the supervisory authorities in defining individual roles and responsibilities in a firm and the methods that are most effective to hold individuals accountable.
Related Link: Meeting Update for Asia
Keywords: Asia Pacific, Banking, Insurance, Securities, Misconduct Risk, G20, Regulatory Reforms, Fintech, Regtech, RCG, FSB
Previous ArticleMario Draghi of ECB on Completing Banking and Capital Markets Unions
PRA published a set of questions and answers (Q&A) covering common queries regarding residential and commercial property valuations, for the purpose of the Capital Requirements Regulation (CRR), during the period of disruption caused by COVID-19 pandemic.
IOSCO proposed updates to its principles for regulated entities that outsource tasks to service providers.
MAS announced that the first phase of the Veritas initiative will commence with the development of fairness metrics in credit risk scoring and customer marketing.
BoE published the Statistical Notice 2020/4 to update the buy-to-let (BTL) Phase 2 and Phase 3 definitions for the Interest Rate Type data item.
FSI published a brief note that examines challenges facing the banking sector as a result of the payment deferral programs put in place to support borrowers affected by the COVID-19 pandemic.
PRA published the policy statement PS14/20, which contains the supervisory statement SS1/20 and the feedback to responses to the consultation paper CP22/19 on expectations for investment by firms in accordance with the Prudent Person Principle, or PPP, as set out in the Investments Part of the PRA Rulebook.
EBA published an opinion following the notification by the French macro-prudential authority, the Haut Conseil de Stabilité Financière (HCSF), of its intention to extend a measure introduced in 2018 on the use of Article 458(9) of the Capital Requirements Regulation (CRR).
As part of a Research Bulletin on the recent policy-relevant work, ECB published an article that examines the lessons learned from past crises for nonperforming loan resolution in the post COVID-19 period.
RBNZ published the financial stability report for May 2020. This review of the financial system in the country highlights that the economic disruption associated with COVID-19 will present challenges to the financial system.
ECB updated the guidance notes for reporting related to the statistics on holdings of securities by reporting banking groups (SHSG).