JFSA Consults on Rules in Final Basel Package and on LIBOR Cessation
The Japanese Financial Services Agency (JFSA) proposed amendments to the regulatory notices on credit risk, credit valuation adjustment (CVA) risk, and market risk capital requirements under the Basel framework. The comment period on the consultation closes on October 29, 2021. The "partial amendments to the notifications" on credit, CVA, and market risks will be applied from March 31, 2023, for internationally unified standard financial institutions and domestic standard financial institutions that use internal models. For other domestic standard financial institutions, the application can be extended for one year—that is, the amendments will be applicable from March 31, 2024.
In addition, JFSA issued for consultation the draft regulatory notice designating certain rules based on Article 2, Paragraphs (1) and (2) of the "Cabinet Office Order on Restrictions on Over-the-Counter-Derivatives Transactions," in response to the cessation of LIBOR. The proposal intends to develop rules for the obligation of centralization of clearing as well as rules for transactions subject to electronic trading platform regulations. JFSA is requesting comments until October 08, 2021.
Comment Due Date: October 29, 2021 (Basel)/October 08, 2021 (LIBOR)
Keywords: Asia Pacific, Japan, Banking, Securities, Credit Risk, Market Risk, CVA Risk, Basel, LIBOR, OTC Derivatives, Pillar 1, Pillar 3, Disclosures, Regulatory Capital, Benchmark Reforms, Reporting, JFSA
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.
Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Previous Article
ESMA Sets Out Work Priorities for 2022Related Articles
ISSB Sustainability Standards Expected to Become Global Baseline
The finalization of the two sustainability disclosure standards—IFRS S1 and IFRS S2—is expected to be a significant step forward in the harmonization of sustainability disclosures worldwide.
IOSCO, BIS, and FSB to Intensify Focus on Decentralized Finance
Decentralized finance (DeFi) is expected to increase in prominence, finding traction in use cases such as lending, trading, and investing, without the intermediation of traditional financial institutions.
BCBS Assesses NSFR and Large Exposures Rules in US
The Basel Committee on Banking Supervision (BCBS) published reports that assessed the overall implementation of the net stable funding ratio (NSFR) and the large exposures rules in the U.S.
Global Agencies Focus on ESG Data, Climate Litigation and Nature Risks
At the global level, supervisory efforts are increasingly focused on addressing climate risks via better quality data and innovative use of technologies such as generative artificial intelligence (AI) and blockchain.
ISSB Standards Shine Spotlight on Comparability of ESG Disclosures
The finalization of the IFRS sustainability disclosure standards in late June 2023 has brought to the forefront the themes of the harmonization of sustainability disclosures
EBA Issues Several Regulatory and Reporting Updates for Banks
The European Banking Authority (EBA) recently issued several regulatory publications impacting the banking sector.
BCBS Proposes to Revise Core Principles for Banking Supervision
The Basel Committee on Banking Supervision (BCBS) launched a consultation on revisions to the core principles for effective banking supervision, with the comment period ending on October 06, 2023.
US Proposes Final Basel Rules, Transition Period to Start in July 2025
The U.S. banking agencies (FDIC, FED, and OCC) recently proposed rules implementing the final Basel III reforms, also known as the Basel III Endgame.
FSB Report Outlines Next Steps for Climate Risk Roadmap
The Financial Stability Board (FSB) recently published the second annual progress report on the July 2021 roadmap to address climate-related financial risks.
EBA Plans on Ad-hoc ESG Data Collection and Climate Scenario Exercise
The recognition of climate change as a systemic risk to the global economy has further intensified regulatory and supervisory focus on monitoring of the environmental, social, and governance (ESG) risks.
