APRA recently granted Intesa Sanpaolo SPA a license to operate as a foreign authorized deposit-taking institution under the Banking Act. Additionally, APRA issued a statement with respect to the announcement by Xinja Bank Limited that it intends to return all funds to depositors and ultimately relinquish its license to operate as an authorized deposit-taking institution.
As a financial safety regulator in Australia, APRA announced that it will closely monitor the return of deposits to ensure all funds are returned to Xinja depositors in an orderly and timely manner. In addition to the return of deposit process, the depositors of this bank remain protected by the Financial Claims Scheme. The Financial Claims Scheme is an Australian government scheme that provides protection to deposit-holders with Australian incorporated banks, building societies, and credit unions (known as authorized deposit-taking institutions) as well as general insurance policyholders and claimants, in the unlikely event that one of these financial institutions fails. This scheme is a government-backed safety net for deposits of up to $250,000 per account holder per authorized deposit-taking institution.
Keywords: Asia Pacific, Australia, Banking, Bank Licenses, Xinja Bank, Intesa Sanpaolo, Deposit Protection, APRA
The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.
The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.
The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.
The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.
The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.
The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.
The Financial Conduct Authority (FCA) is seeking comments, until December 21, 2022, on the draft guidance for firms to support existing mortgage borrowers.
The Financial Stability Board (FSB) published a report that assesses progress on the transition from the Interbank Offered Rates, or IBORs, to overnight risk-free rates as well as a report that assesses global trends in the non-bank financial intermediation (NBFI) sector.