The Japanese Financial Services Agency (JFSA) proposed amendments to the regulatory notices on credit risk, credit valuation adjustment (CVA) risk, and market risk capital requirements under the Basel framework. The comment period on the consultation closes on October 29, 2021. The "partial amendments to the notifications" on credit, CVA, and market risks will be applied from March 31, 2023, for internationally unified standard financial institutions and domestic standard financial institutions that use internal models. For other domestic standard financial institutions, the application can be extended for one year—that is, the amendments will be applicable from March 31, 2024.
In addition, JFSA issued for consultation the draft regulatory notice designating certain rules based on Article 2, Paragraphs (1) and (2) of the "Cabinet Office Order on Restrictions on Over-the-Counter-Derivatives Transactions," in response to the cessation of LIBOR. The proposal intends to develop rules for the obligation of centralization of clearing as well as rules for transactions subject to electronic trading platform regulations. JFSA is requesting comments until October 08, 2021.
Comment Due Date: October 29, 2021 (Basel)/October 08, 2021 (LIBOR)
Keywords: Asia Pacific, Japan, Banking, Securities, Credit Risk, Market Risk, CVA Risk, Basel, LIBOR, OTC Derivatives, Pillar 1, Pillar 3, Disclosures, Regulatory Capital, Benchmark Reforms, Reporting, JFSA
Previous ArticleESMA Sets Out Work Priorities for 2022
The Central Bank of the Philippines (BSP) issued communications covering developments related to online lending platforms, open finance framework and roadmap, and on the expected regulations in the area sustainable finance.
The Board of Governors of the Federal Reserve System (FED) published the final rule that amends Regulation I to reduce the quarterly reporting burden for member banks by automating the application process for adjusting their subscriptions to the Federal Reserve Bank capital stock, except in the context of mergers.
The European Banking Authority (EBA) published its assessment of risks through the quarterly Risk Dashboard and the results of the Autumn edition of the Risk Assessment Questionnaire (RAQ).
The Malta Financial Services Authority (MFSA) updated the guidelines on supervisory reporting requirements under the reporting framework 3.0.
The Hong Kong Monetary Authority (HKMA) published a circular, along with the reporting form and instructions, for self-assessment, by authorized institutions, of compliance with the Code of Banking Practice 2021.
The Financial Conduct Authority (FCA) decided to register European DataWarehouse Ltd and SecRep Limited as securitization repositories under the UK Securitization Regulation, with effect from January 17, 2022.
The European Commission (EC) published the Delegated Regulation 2022/25, which supplements the Investment Firms Regulation (IFR or Regulation 2019/2033) with respect to the regulatory technical standards specifying the methods for measuring the K-factors referred to in Article 15 of the IFR.
The Bank of International Settlements (BIS) published a paper that assesses the ways in which platform-based business models can affect financial inclusion, competition, financial stability and consumer protection.
The Central Bank of Egypt (CBE) published a circular with instructions on emergency liquidity assistance to banks that are unable to meet their liquidity requirements.
The European Supervisory Authorities (ESAs) published the list of identified financial conglomerates for 2021.