Asia-Pacific
Hong Kong allows collateral reuse in offshore yuan bond repos
HKMA says changes will increase offshore participation in mainland China bond market
Bank Indonesia makes second surprise rate cut
Consecutive cuts come despite strong second-quarter growth
Six central banks report increase in AML/CFT risks
Nine in 10 institutions indicate having sufficient powers to deal with risks
Central banks see cyber attacks as key financial stability risk
Respondents also reveal other elevated risks, including geopolitics and tariffs
Cyber attacks rise in three-fifths of jurisdictions
Central banks lacking incident response team report highest rate of attacks
Brunei and Singapore ink cross-border collateral agreement
Central banks say move will allow access to wider range of collateral for liquidity operations
People: BSP appoints new deputy governor for supervision
Plus: Kenya lines up Nokia’s country chief for seat on board, and head of US crypto council steps down
Majority of central banks have analysed effects of tariffs
Spike in levies seen as having varying degrees of impact on financial stability
Only 30% of central banks conduct non-bank stress-testing
Exercise tends to be less common in institutions with smaller financial stability teams
Most central banks seek improved regulatory frameworks
Key areas include laws on systemically important banks, liquidity risks, insurance and fintechs
Limit on insured bank deposit payouts averages $50,000
One in 10 jurisdictions lack any deposit insurance fund
Two in five central banks see need for more macro-pru tools
Caps on loan-to-value ratios are respondents’ most actively used policy
AI most widely used for document preparation in financial stability
Smaller financial stability teams less likely to utilise technology
Central banks with resource deficiency tend to pay higher salaries
Average financial stability budget also higher in units with that report non-staff resource shortage
Financial stability staff sufficiency improves year on year
Most central banks report contentment with non-staff resources
Most central banks co-ordinate monetary and financial stability tools
Cross-scenario evaluation and committee overlap cited as areas of interaction
HKMA to cut budget and freeze headcount – media report
De facto central bank could be latest to join belt-tightening campaign by Hong Kong institutions
Central banks’ CBDC sentiment can prove contagious – BIS study
Authors say Fed and ECB’s positions on digital assets affect how the currencies are perceived elsewhere
Supervisors widely use suptech tools for data collection and validation
AI use is growing but remains much less widespread than suptech
RBNZ pushes back implementation of deposit-taker regulations
Central bank says rules will now come on line in December, rather than July, of 2028
Indonesia eases policy rate after Trump announces 19% tariff
Central bank says 25bp cut was needed to support economy amid weak global outlook
Resolution framework update planned by 56% of supervisors
Non-central bank supervisory authorities less likely to have bail-in powers
Collateral pre-positioning reported in half of jurisdictions
Most supervisors believe banks are ready to access emergency central bank liquidity
Supervisors report low adoption of newer global standards
High income supervisors more likely to have regulations in place