FSB Releases Update on Meeting of Regional Consultative Group for Asia
FSB published an update on the meeting of its Regional Consultative Group (RCG) for Asia. The meeting was hosted by Bank Negara Malaysia in Kuala Lumpur. The key topics of the discussion included design and use of financial-sector crisis simulation exercises, growth of nonbank financial intermediation, work on addressing climate change risks, and impact of regulatory reforms on small and medium enterprise (SME) financing.
Discussions at the meeting involved the following topics:
- Vulnerabilities and financial stability issues, including risks from global trends, including the resumption of upward prices in risky assets, loosening of credit standards, and increases in the cost of credit.
- Update on the FSB work program, particularly related to market fragmentation, financial innovation and fintech credit, and cyber incident response and recovery.
- Design and use of financial- sector crisis simulation exercises: members were briefed on lessons learned from simulation exercises in Hong Kong SAR and Singapore and exchanged views on how a regional exercise could be conducted.
- Growth of non-bank financial intermediation in Asia.
- Exchange of views on the impact of the reforms on SME financing: observations included the fact that the recent consultation report on effects of financial regulatory reforms on SME financing does not identify material and persistent negative effects on SME financing; benefits and challenges of fintech credit for SME financing were also discussed.
- Discussion on the financial risks, both physical and transition, resulting from climate change; analysis of recommendations put forward by the Network for Greening the Financial System; and exchange of views on the roles of financial institutions, central banks, and supervisors.
Related Link: Summary of Meeting
Keywords: International, Asia Pacific, Banking, RCG, Fintech, Financial Stability, Shadow Banking, Climate Change risks, FSB
Previous Article
OJK Consults on Integrated Reporting Portal for BanksRelated Articles
EBA Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models
The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.
EP Reaches Agreement on Corporate Sustainability Reporting Directive
The European Council and the European Parliament (EP) reached a provisional political agreement on the Corporate Sustainability Reporting Directive (CSRD).
PRA Consults on Model Risk Management Principles for Banks
The Prudential Regulation Authority (PRA) launched a consultation (CP6/22) that sets out proposal for a new Supervisory Statement on expectations for management of model risk by banks.
EC Regulation Amends Standards for Calculating Credit Risk Adjustments
The European Commission (EC) published the Delegated Regulation 2022/954, which amends regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.
BIS Hub Updates Work Program for 2022, Announces New Projects
The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.
EIOPA Issues Cyber Underwriting Proposal, Statement on Open Insurance
The European Insurance and Occupational Pensions Authority (EIOPA) published two consultation papers—one on the supervisory statement on exclusions related to systemic events and the other on the supervisory statement on the management of non-affirmative cyber exposures.
US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule
Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)
EIOPA Consults on Review of Securitization Framework in Solvency II
The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.
UK Authorities Issue Regulatory and Reporting Updates for Banks
The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.
BCBS Issues Climate Risk Principles while HKMA Expresses Its Support
The Basel Committee on Banking Supervision (BCBS) issued principles for the effective management and supervision of climate-related financial risks.