FSB published an update on the meeting of its Regional Consultative Group (RCG) for Asia. BNM hosted this meeting of the RCG in Kuala Lumpurm, with the key topics of discussion being cross-border resolution, effects of G20 reforms, fintech and regtech, and efforts to reduce misconduct risk.
Members of the RCG for Asia began by considering vulnerabilities in the global financial system, noting in particular the high levels of debt. They examined the reasons and possible implications of the increasing share of cross-border lending to Asia, which is being undertaken by Asian banks. Members received an update on the current and planned activities of FSB, which are intended to reinforce the G20 objective of strong, sustainable, and balanced growth. Another topic of consideration was the resolution of large systemic banks and other financial institutions, particularly in a cross-border context. RCG members discussed challenges being faced in the implementation of the FSB key attributes of effective resolution regimes for financial institutions, in addition to the information-sharing arrangements and other cross-border arrangements.
Members turned their attention to the regulatory treatment of sovereign exposures and the effects of G20 reforms. They discussed the role that sovereign exposures play in the banking system, financial markets, and the broader economy, along with the risks that they may pose. Members discussed the role that fintech and regtech can play in improving the effective implementation of anti-money laundering and countering the financing of terrorism (AML/CFT) measures. They discussed steps that the official sector could take to promote innovation that mitigates money laundering and terrorist financing risks. The meeting concluded with a discussion on reducing the risk of misconduct. Members discussed the extent of involvement of the supervisory authorities in defining individual roles and responsibilities in a firm and the methods that are most effective to hold individuals accountable.
Related Link: Meeting Update for Asia
Keywords: Asia Pacific, Banking, Insurance, Securities, Misconduct Risk, G20, Regulatory Reforms, Fintech, Regtech, RCG, FSB
Previous ArticleMario Draghi of ECB on Completing Banking and Capital Markets Unions
EBA published a report on the implementation of selected COVID-19 policies within the prudential framework for banking sector.
BCBS published the eighteenth progress report on implementation of the Basel III regulatory framework in member jurisdictions.
BCBS amended the guidelines on sound management of risks related to money laundering and financing of terrorism (ML/FT).
US Agencies (Farm Credit Administration, FDIC, FED, FHFA, and OCC) finalized changes to the swap margin rule to facilitate implementation of prudent risk management strategies at banks and other entities with significant swap activities.
PRA published a letter that builds on the expectations set out in the supervisory statement (SS3/19) on enhancing banks' and insurers' approaches to managing the financial risks from climate change.
EBA finalized the guidelines on treatment of structural foreign-exchange (FX) positions under Article 352(2) of the Capital Requirements Regulation (CRR).
FSB published a statement on the impact of COVID-19 pandemic on global benchmark transition.
IAIS published the list of Internationally Active Insurance Groups (IAIGs) publicly disclosed by group-wide supervisors.
FED has temporarily revised the reporting form on consolidated financial statements for holding companies (FR Y-9C; OMB No. 7100-0128).
EC launched a consultation on the review of the key elements of Solvency II Directive, with the comment period ending on October 21, 2020.