On 7 March 2024, the Basel Committee on Banking Supervision (Basel Committee) published a Consultative Document setting out proposed amendments to its assessment methodology for global systemically important banks (G-SIBs). The proposed changes are intended to address “window-dressing” behaviour by some banks in the context of the G-SIB framework where regulatory arbitrage behaviour seeks to … Continue Reading
On 29 February 2024, the Basel Committee on Banking Supervision (Basel Committee) announced it had approved revisions to the Core Principles for Effective Banking Supervision. The final standard, which follows an earlier consultation, will be published following the International Conference of Banking Supervisors on 24-25 April 2024. The Basel Committee has also announced that it … Continue Reading
On 27 November 2023, the Financial Stability Board (FSB) published the 2023 list of global systemically important banks (G-SIBs). FSB member authorities apply the following to G-SIBs: high capital buffer, total loss-absorbing capacity, group wide resolution planning and regular resolvability assessments and higher supervisory expectations including for risk management functions. The new list of G-SIBs … Continue Reading
On 27 November 2023, the Basel Committee on Banking Supervision published material related to the identification of the 2023 global systemically important banks (G-SIB), including updated denominators used to calculate banks’ scores, the thresholds used to allocate the banks to buckets and the values of the 13 high-level indicators of all banks in the main … Continue Reading
On 27 November 2023, the Basel Committee on Banking Supervision (Basel Committee) published a supervisory newsletter on the adoption of the Principles for Operational Resilience (POR) and the revised Principles for the Sound Management of Operational Risk (PSMOR). The newsletter reports on the Basel Committee’s evaluation of the POR and the PSMOR in early 2023 … Continue Reading
On 22 November 2023, the Basel Committee on Banking Supervision (Basel Committee) published a newsletter on the implementation of the Principles for the effective management and supervision of climate-related financial risks (the Principles). The Basel Committee published the Principles, which seek to improve banks’ climate-related financial risk management and supervisors’ practices, as part of its … Continue Reading
On 10 October 2023, the Financial Stability Board (FSB) published a report on the 2023 bank failures and the preliminary lessons learnt from resolution. The report identifies preliminary lessons learnt regarding the FSB’s Key Attributes of Effective Resolution Regimes for Financial Institutions (Key Attributes) for: The report seeks to set out a clear understanding of … Continue Reading
On 11 October 2023, the Financial Stability Board (FSB) published an annual report on promoting global financial stability. The report, which was delivered to G20 Finance Ministers and Central Bank Governors ahead of their meeting in Marrakesh, describes the FSB’s work to promote global financial stability. The report looks at the banking turmoil in March … Continue Reading
On 5 October 2023, the Basel Committee on Banking Supervision published a report on the 2023 banking turmoil. The report assesses the causes of the banking turmoil, the regulatory and supervisory responses and the initial lessons learnt. Drawing on the findings of this report, the Basel Committee is pursuing a series of follow-up initiatives including: … Continue Reading
This article was co-authored with Abhi Ravishankar and Joel McKay In a much anticipated development, Treasury has released for consultation its exposure draft on Australian financial service (AFS) license exemptions for foreign financial services providers (FFSPs) (the exposure draft Bill and explanatory memorandum can be found here). This consultation comes off the back of the previous … Continue Reading
The Australian Securities and Investments Commission (ASIC) has published a media release to confirm that the current transitional licensing relief for foreign financial services providers (FFSPs) providing financial services to Australian wholesale clients has been extended for a further 12 months to 31 March 2025. FFSPs who held the benefit of “sufficient equivalence relief” under certain ASIC class … Continue Reading
While the Financial Accountability Regime Bill 2023 (Cth) (Bill)is still before the Senate, APRA and ASIC (Regulators) have already released draft Regulator rules for consultation. The Regulator rules provide some guidance on what APRA considers a key function for the purposes of assigning responsibility to ‘accountable persons’. If passed by Parliament, the Bill will establish … Continue Reading
In this latest edition of Regulation Around the World we review the position regarding recovery and resolution for banks. Following the 2008 global financial crisis, the G20 leaders endorsed at the Cannes Summit in November 2011, the Financial Stability Board’s Key Attributes of Effective Resolution Regimes for Financial Institutions as the international standard for resolution … Continue Reading
On 6 July 2023, the Basel Committee on Banking Supervision (Basel Committee) published a consultive document on core principles for effective banking supervision (the Core Principles). The Core Principles are the de facto minimum standards for the sound prudential regulation and supervision of banks and banking systems. They are universally applicable and accommodate a range … Continue Reading
In many jurisdictions there has been heightened regulatory scrutiny on how financial institutions are dealing with borrowers in financial difficulty. When looking at the statements and criticisms’ that the regulators have made and what institutions themselves have self-identified, the issues may revolve around five key themes – vulnerable customers, due diligence/understanding customers, forbearance, communications and … Continue Reading
On 7 June 2023, the Bank for International Settlements (BIS) issued a press release concerning the meeting that the Basel Committee on Banking Supervision (Basel Committee) had on 6 June 2023. At this meeting the Basel Committee took stock of recent market developments and risks to the global banking system. It also discussed various policy … Continue Reading
On 25 May 2023, a group of central banks, together with the Bank for International Settlements, published a paper on central bank digital currencies (CBDC): ongoing policy perspectives. Since publishing (i) a report in October 2020 setting out the common foundational principles and core features of a CBDC, and (ii) an executive summary and three … Continue Reading
The month March was a busy month which saw some significant developments in the financial services sector. Notably, ASIC is currently consulting on class orders about financial requirements in considering whether to remake certain class orders. The regulator is also consulting on ‘sunsetting’ class orders changing responsible entities and equal treatment. ASIC also granted conditional … Continue Reading
On 12 April 2023, the Financial Stability Board (FSB) published a letter from its Chair, Klaas Knot, to G20 Finance Ministers and Central Bank Governors, ahead of their meeting on 12-13 April. The letter discusses the recent turmoil in the banking sector and touches on its recommendations to address increasing cyber threats. Mr Knot notes … Continue Reading
On 30 March 2023, the Basel Committee on Banking Supervision published updated a Technical Amendment document containing various technical amendments and FAQs. The Technical Amendment document contains proposed amendments to the Basel Framework relating to the: The deadline for comments on the proposed amendments is 15 May 2023. The Basel Committee has also finalised a … Continue Reading
On 23 March 2023, the Basel Committee on Banking Supervision (Basel Committee) announced a range of policy and supervisory initiatives, following a meeting on 14 March and 22-23 March to take stock of recent market developments and risks to the global banking system. Following the meeting, the Basel Committee announced the following:… Continue Reading
On 14 December 2022, the Basel Committee on Banking Supervision published a report on the evaluation of the impact and efficacy of the Basel III reforms. This report provides the Committee’s first holistic evaluation of the impact and efficacy of the Basel III reforms and how they have affected bank resilience and systemic risk as … Continue Reading
On 24 November 2022, the Bank for International Settlements (BIS) published a newsletter on bank exposures to non-bank financial intermediaries. The newsletter highlights the following: The non-bank financial intermediary (NBFI) sector continues to grow and has the potential to cause financial stability concerns, though its size and the associated risk vary amongst member jurisdictions. Recent … Continue Reading
On 21 November 2022, the Financial Stability Board (FSB) published the 2022 list of globally systemically important banks (G-SIBs). The list is based on end-2021 data and an assessment methodology designed by the Basel Committee on Banking Supervision, which was revised in 2018. The revised methodology is applied for the first time this year. The … Continue Reading