The City of London’s highly lucrative over-the-counter (OTC) derivatives market has come under assault from the US and EU with trillions of pounds of trading activity migrating out of the UK into those two jurisdictions in just March alone, according to a report by Deloitte and IHS Markit.
Regions
US regulators prepare for ESG catch-up
Regulation will be a key tool used by US government departments and agencies as an alternative to legislation in the coming years. This is reflected in recent moves by the country’s regulators, which are preparing the ground for significant changes during President Biden’s first term in office.
ACPR finds French bank exposure to climate change to be moderate
French financial institutions will only be moderately exposed to climate change by 2050 said the Autorité de contrôle prudentiel et de résolution (ACPR), the Bank of France’s prudential regulation unit, in what it billed as the world’s first pilot climate stress test.
Nigeria’s repo markets poised for rapid growth pending regulatory go-ahead
Nigeria’s repo market is sitting at an inflection point in terms of liquidity and development pending regulatory approval for the country’s pension funds and insurance companies to get more deeply involved.
Even ‘bank-friendly’ CBDCs could prove disruptive
Fiat currencies are not about to be displaced by private stablecoins or cryptocurrencies such as bitcoin and ether with the roll out of central bank digital currencies likely to safeguard against the inroads of these new forms of money.
US inter-agency co-operation deepens to provide fintech guidance to banks
US supervisors at federal and state level are looking to work closer together to provide greater clarity to the banking community on fintech issues and the adoption of new innovative technologies.
Time to replace crumbling capital market infrastructure
The pandemic has taught businesses of all shapes and sizes that they need to radically rethink outdated ways of working. It has shown that almost every industry is capable of rapid digital transformation when needed, and many industries’ histories will now forever be split into two distinct chapters: pre- and post-Covid-19.
SFC breaks up market misconduct syndicate
Members of a syndicate suspected of market misconduct and fraud were arrested on April 22 by the Commercial Crime Bureau at the behest of The Hong Kong Securities and Futures Commission (SFC).
UK, US and Australian banks see declining loan-loss provisions, with NPLs to rise
Stronger economic recoveries is resulting in falling loan-loss provisions by UK, US and Australian banks, said Moody’s investors service, though non-performing loans (NPLs) are likely to rise as government support measures end.
Private equity firms helped stabilise financial system during last crisis
Research has shown that private equity (PE) investors not only helped failing banks recover well by buying into them after the 2007–2009 global financial crisis (GFC), but also contributed to financial stability, according to a paper published by the Federal Deposit Insurance Corporation (FDIC) on April 22.
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