FSC and FSS Announce Regulatory Changes for Financial Sector Entities
FSS, a South Korean regulator, published a notice on revision of requirements in the context of domestic systemically important banks or D-SIBs. The comment period for this notice ends on June 08, 2020. Additionally, FSC Korea made announcements related to postponement of the implementation of margin requirements for non-centrally cleared OTC derivative transactions and extension of the best practice guidelines on supervision of financial conglomerates.
FSC Korea announced a one-year postponement of the implementation of margin requirements for non centrally cleared OTC derivative transactions to help ease compliance burdens on financial institutions amid the COVID 19 crisis. The revised deadline is September 01, 2021 for financial institutions with non centrally cleared derivatives of KRW 70 trillion or more and September 01, 2022 for financial institutions with non centrally cleared derivatives of KRW 10 trillion or more and less than KRW 70 trillion. FSC Korea also approved revisions to the best practice guidelines on supervision of financial conglomerates and decided to extend the implementation of these guidelines for another year from May 01, 2020 to April 30, 2021 The financial conglomerates will disclose their group-wide risks at the end of September 2020.
Keywords: Asia Pacific, Korea, Banking, COVID-19, Basel III, IFRS 9, OTC Derivatives, Margin Requirements, D-SIBs, Systemic Risk, Financial Conglomerates, Guideline, FSS, FSC
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Anna Krayn
CECL adoption expert; engagement manager for loss estimation, internal risk capability enhancement, and counterparty credit risk management
Previous Article
ISDA and AFME Respond to EC Consultations on Climate BenchmarksRelated Articles
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.
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.
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.
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.
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.
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.
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.
HKMA Publications Address Sustainability Issues in Financial Sector
The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.
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.
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.
