ADFW’s Post

Using Payment-versus-Payment (#PvP) mechanisms will be relevant to reduce FX settlement risk amidst an increasing move towards instantaneous settlement. Kudos to Global Foreign Exchange Committee for the efforts to promote adoption of #PvP solutions. #T+1 #FX #settlement

On September 10, 2024, Michael S. Barr, Vice Chair for Supervision at the Federal Reserve, delivered a speech outlining his recommendations to re-propose the Basel endgame and G-SIB surcharge rules. Key takeaways: 👉 Exemption for banks with assets between $100-250B, except for unrealized gains and losses. 👉 G-SIBs could see a 9% increase in equity capital requirements. 👉 Updates to the G-SIB surcharge considering economic growth and inflation. 💡 Dive into the full analysis and what these changes mean for the financial landscape in our latest blog : https://lnkd.in/eHhVRGiW #RegTech #RegulatoryReporting #Banking

Day 1 of Asian Institute of Chartered Bankers #IFCTF 2024, great to hear Mr Mohd Fuad Arshad of BNM explain the trajectory of International and Domestic Standards, and what banks need to adopt: 1) Better understanding of risk and #context 2) More risk based approach 3) Balanced implementation of technical compliance AND #effective outcomes 4) More #transparency Come visit us at our booth to learn how we can help banks stay ahead of evolving regulations! With Tom McNally Tom Clifford Andy Wong and ABBAS ALI KAVERIPAKKAM #transactionmonitoring #data

Looking forward to presenting at the Association of Foreign Banks (AFB) seminar on electronic trade documents on June 6th in London. Along with Geoffrey Wynne and Simon Cook from Sullivan & Worcester LLP, we will be exploring opportunities for banks using Digital Negotiable Instruments (DNIs) in trade and supply chain finance and discussing a range of use cases and practical next steps to adoption. #tradefinance #treasury #treasurymanagement #corporatetreasury #supplychainfinance #tradefinance #DataNotPaper #cashconversion #workingcapitalmanagement #digitaltrade #ETDA #arqit  

Understanding the importance of a #livingwill or resolution and recovery plan is crucial for the stability of the global financial system. These plans ensure that if one of the Global Systemically Important Banks (G-SIBs) faces default, there is an orderly resolution and recovery process in place. It's reassuring to know that a G-SIB's exposure to another G-SIB is limited to 15% of its Tier 1 capital. For the largest US banks, this means their exposures to each other are restricted to around $25-40 billion, chicken feed. However, two significant concerns remain: contagion and the complex legal frameworks governing these institutions. Those of us in financial services during 2008 are well-acquainted with the impact of contagion. The legal challenges, though, are more nuanced. At Likezero, we recognize the complexity in inter-bank agreements between large investment banks, often involving around 100 trading agreements that have been amended many times over the past 30-40 years. Without the right technology, this creates almost impenetrable obscurity regarding termination events. Today, the Financial Times reported that some of the largest banks are struggling to meet the living will requirements. Let’s hope they have a long life expectancy ahead. https://lnkd.in/eZuqiWxY

This weekend, the principals of U.S., European Banking Union and U.K. financial authorities will meet in Washington, part of a series of exercises to test cross-border coordination and readiness to resolve a global systemically important bank in an orderly way.   This Trilateral Principal Level Exercise is intended to enhance understanding of each jurisdiction’s resolution regime for global systemically important banks (G-SIBs), strengthen coordination on cross-border resolution, and promote confidence in and commitment to the orderly resolution of G-SIBs. https://lnkd.in/exzJ-5wJ

In the aftermath of the global financial crisis (GFC), large, global banks were perceived by many, including regulators, as institutions that should be feared, closely watched and, when needed, penalized – particularly if they fell under the category of global systemically important banks (G-SIBs). However,a recent 10-year assessment of G-SIBs by the Basel Committee on Banking Supervision (BCBS) has revealed that systemic importance of G-SIBs have declined a little and the gap between large and ultra-large global banks has narrowed down to some extent. Has the big once again become beautiful! Perhaps not!

Important exercise both in going and gone concern

Domestic Systemically Important Bank (D-SIB) Framework - Review of the Assessment Methodology: Dated:- 29-12-2023 - The Reserve Bank had issued the framework for dealing with Domestic Systemically Important Banks (D-SIBs) on July 22, 2014 . In terms of this framework, the Bank is required to identify and disclose the names of banks designated as D-SIBs annually. Further, in terms of the framework, the assessment methodology, for assessing the systemic importance of banks and identification of the D-SIBs, is required to be reviewed on a periodic basis. Accordingly, a review of the... ... ... http://dlvr.it/T0kC7b #TaxLaws #News #TaxTMI

Rise in capital could impact vibrancy of US capital markets, says ISDA. The Association warns that an increase in capital requirements for bank trading activities under the US Basel III Endgame could impact the liquidity and vibrancy of US capital markets https://lnkd.in/ecKwQvV9 #SecuritiesLending #banking