Banks
BoE sets out post-Brexit supervision plans
Central bank says UK will aim to stay open as banks, insurers and CCPs are brought under the PRA’s oversight; changes imply heavy workload for the supervisor
One big bank falls short of ECB’s capital requirements
One bank falls short and a second comes close, although five banks failed the test in 2016
Bank Negara Malaysia issues new digital currency regulation
Proposed regulation aims to hold digital exchanges to a higher standard of transparency, while ensuring they identify any AML/CFT risks that may arise
Ukrainian central bank warns over ‘lengthy delay’ to IMF aid
National Bank of Ukraine calls for urgent action on state-owned banks; governor’s post remains unfilled
Iran needs financial sector reform – IMF staff
Central bank should have greater independence and supervisory powers, urge IMF staff
HKMA offers fast-track model vetting in swaps hub pitch
Streamlined process could take just six months, says official
MAS expands consumer debt management toolkit
New measure caps “unsecured credit” that banks can offer indebted borrowers; it is a “pre-emptive measure”, says MAS official
IMF concerned about Tanzanian NPL levels
Addressing financial sector vulnerabilities should be a “priority”, as high NPL levels start to restrict lending to the private sector
Russian central bank becomes sole shareholder in failed bank
Central bank injects approximately $7.7 billion into Otkritie
Quick action needed to tackle housing busts – RBNZ paper
Paper studies housing busts around the world and how best to respond to them
Fed finalises new market benchmarks
Three transaction-based alternatives to US dollar Libor will launch in 2018
FCA mulls use of AI to tackle money laundering
Crime unit head says the financial regulator views machine learning as a complement to human judgement, not a replacement
IMF warns Chinese banks are undercapitalised
The IMF report highlights the insufficient capital of Chinese banks, conflicting tensions of growth and stability, and the financial system’s complexity
Fed proposes sharing more information about stress tests
Proposal includes insights about how the regulator estimates hypothetical losses
Basel III changes set to create big winners and losers
Capital hit for G-Sibs ranges from 28% drop to 43% jump, quantitative impact study reveals
BIS paper examines how banks use credit default swaps
Banks use CDS for position taking as well as insurance, but there is little evidence of their use to circumvent capital rules
Flexible exchange rates vital to autonomy – Mexican deputy
Flexible exchange rates should not be abandoned in times of stress, says Guzmán, encouraging policymakers to increase the efficiency of frameworks
BoE seeks to enhance stress-test model oversight
Prudential Regulatory Authority to enforce new stress-test model principles in 2018; smaller banks asked to tailor them to their operations
BoE warns high court of insurance Brexit fallout
UK central bank expects number of insurers filing court claims to be three to five times the “normal level” following Brexit
Russian central bank closes two more banks for malpractice
Smaller banks will be able to operate with “basic licences” from 2018, Nabiullina says
Asian banks vulnerable to fintech disruption, report finds
Banks reliant on transaction fees will struggle to compete with fintech firms who will offer cheaper alternatives; banks in HK, Korea and Singapore all at risk
Instant payments crucial to stop crypto disruption – Mersch
ECB board member reiterates concerns around viability of crypto-currencies, while encouraging banks to adopt instant payment networks
Bank Indonesia expands reserves averaging mechanism
Bank Indonesia to extend the scope of its reserve requirement averaging mechanism to include foreign currency and Islamic banks