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
EBA Launches Stress Tests for Banks, Issues Other Updates
The European Banking Authority (EBA) launched the 2023 European Union (EU)-wide stress test, published annual reports on minimum requirement for own funds and eligible liabilities (MREL) and high earners with data as of December 2021.
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.