Featured Product

    BNM Consults on Requirements for Repurchase Agreement Transactions

    August 20, 2019

    BNM published an exposure draft setting out the revised expectations from the licensed banks and licensed investment banks that enter into repurchase agreement (repo) transactions. This policy document is applicable to repo transactions involving Ringgit and non-Ringgit Repo securities and reverse repo transactions including any outright sale or purchase of repo securities with an intention to repurchase or resell these repo securities at a future date. The response period for the consultation ends on September 13, 2019.

    The policy document on repo transactions seeks to set out the scope of repo transactions that can be conducted by licensed banks and licensed investment banks, to set out regulatory requirements and expectations in relation to repo transactions entered into by licensed banks and licensed investment banks, and to promote sound risk management practices by licensed banks and licensed investment banks for the conduct of repo transactions. Revisions to the policy document comprise primarily of the following:

    • Extension of the maximum tenor of a repo to 5 years from 365 days
    • Expansion of eligible securities to accord flexibility to market participants in their conduct of repo transactions
    • Removal of subjection to Malaysian Annex

    This document will supersede the policy document on repurchase agreement transactions (BNM/RH/PD 032-3), which was issued on July 31, 2015. The revised policy document shall come into effect on date of publication of the final policy. This policy document must be read together with other policy documents and guidelines of BNM, particularly the capital adequacy framework (Basel II – Risk Weighted Assets) issued on May 03, 2019; the single counterparty exposure limit requirements issued on July 09, 2014; the Foreign Exchange Administration rules; the Code of Conduct for Malaysia Wholesale Financial Markets issued on April 13, 2017; the net stable funding ratio requirements issued on July 31, 2019; and the STATsmart reporting requirements.

     

    Related Links

    Comment Due Date: September 13, 2019

    Keywords: Asia Pacific, Malaysia, Banking, REPO, Repurchase Agreement, BNM

    Related Articles
    News

    BaFin Publishes Submission Deadlines Under Solvency II

    BaFin published quarterly and annual submission deadlines on the Solvency II reporting page on its website.

    February 25, 2020 WebPage Regulatory News
    News

    RBNZ to Address Cyber Risk Through Risk Management Guidance

    RBNZ announced that it is strengthening its efforts to enhance resilience of the financial system from cyber threats, including developing risk management guidance and promoting information-sharing in collaboration with industry and other public organizations.

    February 25, 2020 WebPage Regulatory News
    News

    FSI Convened Meeting on Climate Risk Assessment in Financial Sector

    The Financial Stability Institute (FSI) of BIS issued a summary of the meeting held in Basel from February 20-21, 2020.

    February 24, 2020 WebPage Regulatory News
    News

    BCBS Updates Basel III Monitoring Workbook in February 2020

    BCBS updated the workbook for Basel III monitoring to version 4.1.2, for the collection of December 2019 data.

    February 24, 2020 WebPage Regulatory News
    News

    Bank of Finland Updates Validation Checks for AnaCredit Reporting

    Bank of Finland published Version 1.8 of the validation checks for credit data collection under the AnaCredit Regulation.

    February 24, 2020 WebPage Regulatory News
    News

    APRA Plans to Assess Climate Risks and Develop Prudential Guidance

    APRA published a letter that outlines its plans to undertake a climate change vulnerability assessment and develop a prudential practice guide focused on climate-related financial risks.

    February 24, 2020 WebPage Regulatory News
    News

    FDIC Publishes Guide to Help with Third-Party Risk Management

    The technology lab of FDIC (FDiTech) published a new guide to help financial technology, or fintech, companies and others partner with banks.

    February 24, 2020 WebPage Regulatory News
    News

    PRA Removes References to LIBOR in SoP on Pillar 2 Capital and SS20/15

    PRA published a policy statement (PS3/20) that provides updates to certain supervisory statements (SS20/15, SS28/15, and SS35/15) and statements of policy (SoP).

    February 24, 2020 WebPage Regulatory News
    News

    APRA to Transition to Annual Stress Testing of Large Banks in 2020

    APRA published key findings of the stress testing assessment conducted on authorized deposit-taking institutions.

    February 21, 2020 WebPage Regulatory News
    News

    BoE Updates Version 1.1.0 of Taxonomy for Form AS and Form FV

    BoE published the statistical notice 2020/01 that provides an update to Version 1.1.0 of the taxonomy for forms AS (MFI holdings of securities collection) and FV (Financial Vehicle Corporations return) and the associated validation rules.

    February 21, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 4729