BNM issued exposure draft on the recovery and resolution planning framework for financial institutions. To facilitate a systematic approach for financial institutions to conduct assessments or provide material information within the recovery planning process, the policy document is accompanied by a set of reporting templates listed in Appendix 1. As per the proposal, a financial institution shall submit its first recovery plan within 12 months from the date it receives a request from BNM. The comment period for this draft ends on March 31, 2020.
The recovery and resolution planning framework seeks to put in place an effective and efficient process to enhance supervisability, recoverability, and resolvability of financial institutions. The framework will incorporate the essential elements of the FSB's "Key Attributes of Effective Resolution Regime for Financial Institutions" into the domestic regulatory, supervisory, and resolution regimes. Under the proposed framework, each financial institution will be required to identify and plan for the execution of a suite of recovery options to restore its long-term viability under a range of idiosyncratic and system-wide stress events. For the purpose of this draft, a financial institution refers to a banking institution and financial holding company, wherein a banking institution refers to a licensed bank, a licensed Islamic bank, and/or a licensed investment bank. The requirements set out in this proposed policy document shall apply to financial institutions on a consolidated basis. For the purpose of this proposed policy document, this shall include the global operations of the financial institution and all its financial and non-financial subsidiaries, including insurance and/or takaful subsidiaries.
Keywords: Asia Pacific, Malaysia, Banking, Recovery Planning, Recovery and Resolution Framework, Reporting, BNM
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The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.
The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.
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.