Monique Melis

Greensill failure puts bank interactions with NBFIs under the spotlight

The meltdown of Greensill Capital and Archegos Capital Management is putting pressure on financial regulators to widen their scope and pay closer attention to banks like Credit Suisse cosying up to shadow banks for business. 

Basel Committee remains vigilant over Covid-19 risks in this year’s work plan

The Basel Committee on Banking Supervision has committed to continue monitoring the impact of the Covid-19 pandemic on large banks in its 2021–2022 work plan, and stands ready to mitigate any potential risks. 

Charlie Browne

FRTB implementation continues, but many banks still undecided over IMA

Despite the complications posed by the Covid-19 pandemic, banks are mostly pressing ahead with implementing FRTB. There are open questions over how many will use the internal models approach, however. 

Hurricane flooding

Gaps might need plugging in Basel framework to reflect climate risks

The traditional risk categories embedded in the Basel framework can be used to capture many of the potential threats to banks posed by climate change, though more work is needed to figure out where specific tweaks might be required. 

Bryan Stirewalt

Green global standard setter needed to drive adoption of climate finance

Jurisdictions are mostly pursuing their own initiatives on areas such as green bond standards but should an international body be set up to help harmonise them?

Credit ratings rather than size are a better indicator of cyber hygiene for banks

Being a large bank is not necessarily a mark of good cyber hygiene though a higher credit rating may well be a sign that these risks are being properly managed, Fitch Ratings said in a report on April 13. 

IMF and World Bank exploring green debt swaps to support climate finance

Possible routes towards creating green debt swaps are to be launched by November by the International Monetary Fund (IMF) and the World Bank and could help developing countries to act more quickly in tackling human generated climate change. 

CFLI report advises emerging market countries on climate finance

Investments in transitioning to cleaner energy fell 21% in emerging markets in 2020 while they rose 24% in their developed peers, prompting the Climate Finance Leadership Initiative (CFLI) to release a report on how developing countries can rekindle investment in that area.

Stephan Dreyer

Industry readies for release of new identifier for digital assets

Industry demand is driving the need for a new type of identifier, and one which looks specifically at digital assets

FSB to publish recommendations to strengthen money market funds

The Financial Stability Board (FSB) will make recommendations to make money market funds (MMF) more resilient so they do not need public sector support next time markets are in turmoil as happened last March due to the Covid-9 pandemic, said Federal Reserve Board vice chair for supervision and FSB chair, Randal Quarles.