Introduction Financial institutions routinely use models for a broad range of activities, including underwriting credits; valuing exposures, instruments, and positions; measuring risk; managing and safeguarding client assets; determining capital
-
FSB and the IMF update on G20 Data Gaps Initiative
Financial Stability Board (FSB) and the International Monetary Fund (IMF) have updated on the implementation of the second phase of the G20 Data Gaps Initiative (DGI-2). Data gaps limit -
Mauritius joins African Development Bank Bloomberg Bond Index
The African Development Bank has added Mauritius to its Bloomberg African Bond Indices (ABABI). The Bank of Mauritius (Bank) initiated actions to comply with the requirements for the inclusion -
South Africa: Treatment of restructured credit exposures due to Covid-19 Pandemic
The Prudential Authority (PA) indicates it is supportive of Covid-19 relief initiatives, such as payment holidays being offered by banks in order to provide relief to certain borrowers in the -
US: Federal agencies propose rule to amend the swap margin rule
US federal agencies have proposed to change the swap margin rules to facilitate the implementation of prudent risk management strategies at certain banks and swap entities. The swap margin rule
May 6, 2020
The Central Bank of Tunisia to implement IFRS in the Financial Sector
The European Bank for Reconstruction and Development (EBRD) has announced its support for the Central Bank of Tunisia’s adoption and implementation of International Financial Reporting Standards (IFRS). The Central Bank of Tunisia is leading the transition of the financial sector towards IFRS from a prudential point of view. It Africa
May 6, 2020
Final Guidelines on Credit Risk Mitigation for Institutions applying the IRB approach with own estimates of LGDs
The European Banking Authority (EBA) has published its final Guidelines on credit risk mitigation (CRM) in the context of the advanced internal ratings-based (A-IRB) approach (Guidelines). These Guidelines, which are part of the EBA’s regulatory review of the IRB approach, aim to eliminate the remaining significant differences in approaches Europe
May 5, 2020
UK Government’s Bounce Back Loans Scheme: Observations on Credit Risk Mitigation Eligibility and the Leverage Ratio Treatment
The Prudential Regulation Authority (PRA) has published its observations on the risk-weighted treatment of exposures under the Bounce Back Loan Scheme, particularly eligibility for recognition as unfunded credit risk mitigation under the Capital Requirements Regulation. The PRA release also sets out a change to the UK leverage ratio framework. Europe
May 4, 2020
Financial Stability Board: Consultation on guidance on assessing the adequacy of financial resources for CCP resolution
The Financial Stability Board is consulting on Guidance on financial resources to support CCP resolution and on the treatment of CCP equity in resolution (Guidance). Part I of the Guidance proposes five steps to guide supervisory authorities in assessing the adequacy of a central counterparty (CCP)’s financial resources and Other
May 4, 2020
COVID-19 Pandemic: Singapore provides Additional Financial Support for Individuals
The Monetary Authority of Singapore, the Association of Banks in Singapore, and the Finance Houses Association of Singapore have announced additional measures to support individuals facing financial difficulties due to the COVID-19 pandemic. Based on the announcement, the measures will extend the scope of relief for individuals to other Asia & South America