Kumaresan Sivabalan’s Post

On September 10, the Australian Prudential Regulation Authority (APRA) announced proposed changes to the bank capital framework to improve crisis preparedness. The changes focus on simplifying capital requirements and replacing hybrid instruments (AT1 capital) with more reliable forms of capital during times of financial stress. Key Highlights: - APRA proposes phasing out AT1 capital instruments, replacing them with Tier 2 and Common Equity Tier 1 (CET1) capital, ensuring banks can absorb losses more effectively during crises. - Large banks would replace 1.5% of AT1 with 1.25% Tier 2 and 0.25% CET1 capital, while smaller banks would fully replace AT1 with Tier 2 capital. - The changes aim to enhance depositor confidence, reduce compliance costs, and simplify capital requirements, especially for small and mid-size banks. - The transition is proposed to begin in January 2027, with all AT1 capital expected to be replaced by 2032. APRA invites stakeholder feedback during the two-month consultation period on the proposed framework and its implementation. For more updates on financial regulations and crisis preparedness, unlock cutting-edge legal intelligence with a free subscription to our platform — join us today. Visit https://lnkd.in/gZmkUPim to know more. Credit: insuranceasianews #APRA #BankingRegulation #CrisisPreparedness #AT1Capital #FinancialStability #GRI #Australia

To support the management of financial impact on #regulatedentities (REs) due to #climatechange, the Reserve Bank of India issued the Draft Disclosure Framework on Climate-Related Financial Risks, 2024, for public consultation until April 30, 2024. As per the Draft Framework, disclosures made by REs shall cover a range of thematic pillars concerning #Governance, #Strategy, #riskmanagement and Metrics & Targets, wherein all such pillars have been further differentiated into baseline and enhanced disclosures. The proposed Draft Framework suggests that SCBs (Scheduled Commercial Banks), AIFIs (All India Financial Institutions) and NBFCs (Non-Banking Financial Companies) will have to submit both baseline and enhanced disclosures as per the guidelines. However, UCBs (Urban Cooperative Banks) will only be required to submit the baseline disclosures at the minimum. The Official Press Release can be accessed here https://lnkd.in/dZEJgw2Z. #rbi #knowledgesharing #climatemitigation #legacylawoffices #pressrelease

On Thursday (August 1), the Office of the Comptroller of the Currency (OCC), the Federal Reserve Board, and the Federal Deposit Insurance Corporation (FDIC) announced their second notice for public comment under the Economic Growth and Regulatory Paperwork Reduction Act of 1996 (EGRPRA). This initiative aims to identify and revise outdated, unnecessary, or unduly burdensome regulations. Key Highlights: - Regulatory Review: The agencies will review regulations in the categories of Consumer Protection; Directors, Officers, and Employees; and Money Laundering. - Public Comment Period: Comments are invited until October 30, 2024, through the EGRPRA website or other methods specified in the Federal Register notice. - Outreach Meetings: The agencies will hold outreach meetings to gather direct feedback from interested parties, including community bankers. Importance for Community Banks: - Community bankers are especially encouraged to identify regulations that pose unnecessary burdens and suggest improvements. Next Steps: - Two More Notices: Over the next two years, two additional Federal Register notices will be published, covering other categories of regulations. - Participation Encouraged: Members of the public and industry stakeholders are urged to participate in the review process to help streamline regulatory requirements. For more updates on regulatory reviews and financial compliance, follow Global Regulatory Insights. #RegulatoryReview #EGRPRA #BankingRegulations #ConsumerProtection #Compliance #FinancialRegulation #OCC #FederalReserve #FDIC #GRI #USA

* due 5pm today (Australia) : remember to make a submission to the Parliamentary Inquiry into the role of banks in Financial Abuse … I took time out from my travels to make sure NAB got the mention they deserve for Financially Abusing my mother : one page will do it. Give it a go. Submissions are about financial abuse on any level and the banks role in this NAB This is a good way to mark #WorldElderAbuseDay coming up on 15 June ” The inquiry has been launched to help bring the issue into the public consciousness. It will examine the role financial institutions need to play in detecting and preventing financial abuse. With the shift to online services, we need to investigate how family and domestic violence has shifted there too, and whether our regulatory systems are equipped to adequately deal with it. The inquiry is expected to examine the effectiveness of existing laws and how they govern the ability of banks to deal with financial abuse, as well as potential areas for reform. It will also consider steps that might help the banks to detect financial abuse more effectively.” (Sydney Morning Herald) https://lnkd.in/gfTPkNd5 #FinancialAbuse #BigBanks #Banks #ParliamentaryInquiry #NationalAustraliaBank #NAB #ParliamentaryInquiryintoTheRoleOfBanksinFinancialAbuse #DoingTheWork #ElderFinancialAbuseAdvocacy #FinancialAbuseAdvocacy #elderAbuseAdvocacy #AFCAInvestigation #BankFraud #elderFinancialAbuse #ElderAbuse #FinancialAbuse #RedFlag #RedFlagWarning #ElderAbuseDay #IndustrialScaleBankingFail #BankingFail #MakeItRight #BigBanks #IndustrialScaleFinancialAbuse #Advocacy

Published on July 8th, 2024 by the Australian Prudential Regulation Authority (#APRA), this prudential practice guide covers the final guidelines pertaining to Interest Rate Risk in the Banking Book (#IRRBB). The related web link where this guidance was published (https://lnkd.in/dJH8C-wy) includes all the comments received by APRA from multiple bodies on their draft consultation prior to finalization in addition to APRA's response. It also includes the a prudential practice guide for Repricing Analysis and IRRBB Capital Charge with examples and excel templates to be used by reporting institutions in their disclosures. #GRC #Interestraterisk #Pillar2 #Bankingbook #repricinganalsysis #EVE #capitalcharge #capitaladequacy #Basel3 #rateshocks #durationanalysis #GAP #repricinggap #riskmanagement #riskmeasurement #hedging #guidance #practiceguide #disclosure #Pillar3 #reportingstandard #RWA #solvency

Some clear messages from APRA's John Lonsdale 5 years on from Hayne's final report... Culture continues to be a frustratingly nebulous concept for many. Combine that with the time it takes to effect - let alone measure - cultural change and it can feel like a losing battle. Making conversations about culture tangible (ie. through translation to specific behaviours/actions) is critical to driving real change. Conduct goes hand in hand with culture and can be easier to wrestle with. Proactively managing conduct risk can go a long way to embedding the behaviours that underpin an effective 'risk culture', ultimately leading to better customer outcomes and lower operational, regulatory and reputational risk. In a cost constrained environment it's also worth noting that effective conduct risk frameworks are typically embedded in existing operational risk processes and help organisations demonstrate compliance with a number of obligations (DDO, CPS230, 912A(1)(a) to name a few). In an environment of litigious regulators, harsher penalties and resource constraints, prudent organisations are asking themselves: - How is conduct risk managed across my end to end product lifecycle? - Do the right people have access to the right management information / metrics to monitor conduct? - Is there an appropriate balance between voice of customer and commercial at critical decision points?

Reforms are underway in the UK's payment and e-money safeguarding regime. The government is set to enhance the Financial Conduct Authority's powers to provide greater regulatory agility and clearer guidelines for firms. Given the critical issues of delayed client fund returns during insolvency and inadequate fund segregation, these reforms are timely. Firms must now bolster their internal controls, enhance monitoring, and ensure rigorous compliance to safeguard client funds effectively. Stay tuned for more updates on these critical reforms slated for the latter half of 2024. Sam Haskins, Managing Director, in the Regulatory Risk Management team shares his thoughts here: https://lnkd.in/gvkffncp #FCAsafeguarding #emoneysafeguarding #financialconductauthority

Reforms are underway in the UK's payment and e-money safeguarding regime. The government is set to enhance the Financial Conduct Authority's powers to provide greater regulatory agility and clearer guidelines for firms. Given the critical issues of delayed client fund returns during insolvency and inadequate fund segregation, these reforms are timely. Firms must now bolster their internal controls, enhance monitoring, and ensure rigorous compliance to safeguard client funds effectively. Stay tuned for more updates on these critical reforms slated for the latter half of 2024. Sam Haskins, Managing Director, in the Regulatory Risk Management team shares his thoughts here: https://lnkd.in/esGYkpmN #FCAsafeguarding #emoneysafeguarding #financialconductauthority

UK Financial Services Regulatory Framework: A Glimpse The UK boasts a robust regulatory framework for financial services, ensuring stability and consumer protection. Here's a breakdown: Oversight: Financial Conduct Authority (FCA): Focuses on conduct areas, emphasizing fair treatment of customers and market integrity. Prudential Regulation Authority (PRA): Oversees prudential aspects, safeguarding the financial health of institutions and the system. Bank of England (BoE): Establishes the Financial Policy Committee (FPC) to ensure financial stability. Dual Regulation: Firms like banks, insurers, and major investment firms are subject to: PRA supervision: Ensures adequate capital, liquidity risk management, and sound risk management frameworks. FCA supervision: Promotes ethical conduct, transparency, and fair customer treatment. Key Focus Areas: Prudential Regulation: Capital Adequacy Liquidity Risk Management Risk Management Framework Corporate Governance Conduct Regulation: Transparency and Disclosure Mis-selling Prevention Treating Customers Fairly (TCF) Market Integrity & Financial Crime Prevention Enforcement Mechanisms: Regulatory bodies utilize: Authorisation Process: Ensures firms meet set standards before offering services. Ongoing Supervision: Monitors adherence to regulations. Enforcement Actions: Imposes fines, restrictions, and potential prosecutions for breaches. This framework fosters a secure and trustworthy financial environment, protecting consumers and promoting responsible business practices. #UKfinance, #financialregulation

Reforms are underway in the UK's payment and e-money safeguarding regime. The government is set to enhance the Financial Conduct Authority's powers to provide greater regulatory agility and clearer guidelines for firms. Given the critical issues of delayed client fund returns during insolvency and inadequate fund segregation, these reforms are timely. Firms must now bolster their internal controls, enhance monitoring, and ensure rigorous compliance to safeguard client funds effectively. Stay tuned for more updates on these critical reforms slated for the latter half of 2024. Sam Haskins, Managing Director, in the Regulatory Risk Management team shares his thoughts here: https://lnkd.in/ecAtdVdR #FCAsafeguarding #emoneysafeguarding #financialconductauthority