Featured Product

    BNM Publishes Policy Document and Templates on Recovery Planning

    July 28, 2021

    BNM, the central bank of Malaysia, published a policy document that sets out the expectations and policy requirements on the development and maintenance of recovery plans for financial institutions. BNM also published the reporting templates for recover planning. 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. The information and assessment in recovery plans will serve as an important starting point for Perbadanan Insurans Deposit Malaysia (PIDM), which is the resolution authority of licensed banks and licensed Islamic banks, to improve the resolvability of member institutions and operationalize feasible and credible resolution plans. The policy document comes into effect on July 28, 2021.

    BNM, in collaboration with PIDM, has established the policy framework to implement recovery and resolution planning for financial institutions in Malaysia, in line with the Financial Stability Board’s Key Attributes of Effective Resolution Regimes for Financial Institution. The recovery and resolution planning framework seeks to put in place an effective and efficient process to enhance supervision, recoverability, and resolvability of financial institutions, by incorporating essential elements of Key Attribute 11 of the Key Attributes into the domestic regulatory, supervisory, and resolution regimes. The recovery and resolution planning framework aims to:

    • facilitate the preparation and maintenance of robust recovery plans by financial institutions that serve as a strategic planning tool that integrates with the risk appetite framework and reinforces risk management functions and strengthens incentives to establish private-sector arrangements to recover from a wide range of stress events.
    • enhance capacity and preparedness of supervisory authorities to facilitate ex ante changes to financial institutions’ business structure and operations, support smooth execution of recovery plans, inform calibration of timely intervention and resolution actions to address viability threats, and support effective supervisory cooperation and crisis management arrangements with host and home authorities.
    • strengthen capacity and preparedness of resolution authorities to improve resolvability of financial institutions and operationalize feasible and credible resolution plans that preserve continuity of critical functions, promote resolution strategies that minimize risks of loss, and provide for procedural/legal clarity to ensure orderly resolution in home and host jurisdictions.

     

    Related Links

    Effective Date: July 28, 2021

    Keywords: Asia Pacific, Malaysia, Banking, Resolution Framework, Recovery and Resolution Planning, Reporting, Islamic Banks, BNM

    Featured Experts
    Related Articles
    News

    EBA Proposes Standards for IRRBB Reporting Under Basel Framework

    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.

    January 31, 2023 WebPage Regulatory News
    News

    FED Issues Further Details on Pilot Climate Scenario Analysis Exercise

    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.

    January 17, 2023 WebPage Regulatory News
    News

    US Agencies Issue Several Regulatory and Reporting Updates

    The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.

    January 04, 2023 WebPage Regulatory News
    News

    ECB Issues Multiple Reports and Regulatory Updates for Banks

    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.

    January 01, 2023 WebPage Regulatory News
    News

    HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements

    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.

    December 30, 2022 WebPage Regulatory News
    News

    EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR

    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.

    December 29, 2022 WebPage Regulatory News
    News

    CBIRC Revises Measures on Corporate Governance Supervision

    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.

    December 29, 2022 WebPage Regulatory News
    News

    HKMA Publications Address Sustainability Issues in Financial Sector

    The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.

    December 23, 2022 WebPage Regulatory News
    News

    EBA Updates Address Basel and NPL Requirements for Banks

    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.

    December 22, 2022 WebPage Regulatory News
    News

    ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite

    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.

    December 22, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8699