Banks
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
Swift warns of greater cyber threats as security control deadline nears
Customers have until December 31 to implement 16 mandatory controls
Cocos lower banks’ funding costs – BIS paper
Mechanical triggers and equity conversion strengthen cocos’ impact, paper finds
RBNZ eases housing market restrictions
New government’s policies should “dampen” housing market pressures, acting governor says
Central Bank of Myanmar retreats from stricter loan rules for banks
CBM loosens regulations on overdraft facilities in response to market concern
Most UK banks withstand ‘disorderly Brexit’ stress tests – BoE
Majority of banks unfazed by tests “more severe than the financial crisis”, but a few struggle with lingering issues
Libyan PM calls for unification of country’s central banks
Eastern branch functions as separate central bank and issues Russian-made currency
Banks hit back at RBNZ macro-prudential proposal
RBNZ’s proposed debt-to-income limits criticised by commercial banks, which question methodology and claim measure would increase financial instability
Some eurozone banks must reform audits – ECB supervisor
Boards do not always pay enough attention to audits, says Pentti Hakkarainen
EBA announces move to Paris
The decision will guarantee the “seamless continuation” of its activities, says EBA
FSB unveils latest G-Sib list
One bank joins and other drops off the list of the world’s most systemically important firms
EBA releases guidelines for internal model risk parameters
Revisions aim to strike a balance between comparability of models and risk sensitivity, says EBA
Central Bank of Bahamas to oversee establishment of credit bureau
Credit bureau in sight as Bahamas central bank gains oversight of new regulatory reporting system, which will give lenders a better model for pricing risk
Fernando Restoy looks to realign Basel’s FSI
The Financial Stability Institute chair discusses the prospects for implementing Basel III, the challenging political context and the FSI’s role in it all
FCA to publicly recognise selected codes of conduct
Regulator says the public recognition of good practice will encourage adherence
Bank of Spain inspector denounces supervision interference
Supervisors consider essential the creation of a body to safeguard their independence
Kuwait could create financial stability committee – IMF
The central bank could strengthen supervision by creating a new committee, say IMF staff; the country is weathering oil shocks well
RBNZ cracks down on Westpac over modelling breach
Central bank imposes capital penalty after uncovering failings related to use of internal models
TCH launches real-time payment platform in US
Firm launches US’s first real-time payment system, cutting transaction times from days to seconds