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To ensure continuous adherence to dynamic and evolving European Union regulations, banks must adopt a multi-faceted approach that encompasses both strategic planning and operational execution. Some key measures that could be adopted are: * Establishing robust compliance frameworks tailored to the specific regulatory requirements of the EU * Foster a culture of compliance within the institution * Collaborate with external consultants specialising in EU financial regulation who can provide valuable insights into best practices for maintaining compliance amidst evolving standards * Leverage advanced data analytics tools which enable banks to systematically analyse transaction patterns and detect anomalies indicative of non-compliant behaviour early on By adopting these measures comprehensively—incorporating technological innovation along with human expertise—banks can achieve sustained adherence across varying EU directives whilst mitigating associated risks proficiently. To learn more on how we can help you contact us via [email protected] Visit our website: https://lnkd.in/d8-y5vB #aspectadvisory #riskmanagement #bankingregulations #regulation #EU #EUregulations

Published on March 15, 2024, this document sets out the minimum standards which the Hong Kong Monetary Authority HKMA expects authorized institutions to adopt for the calculation of their market risk capital charges based on the Basel III proposal. This module is designed not just to provide details in addition to the Banking (Capital) Rules but to integrally cover all the related requirements.  #marketrisk #riskmeasurement #HKMA #BaselIII #riskweightedassets #riskassessment #capitalrules #solvency #Basel #RWA #tradingbook

Singapore's financial sector faces new challenges with rising money laundering risks. The Monetary Authority of Singapore's latest report sheds light on crucial issues affecting our banking system. Discover the impacts and essential measures banks are urged to take here: https://buff.ly/3XGYTK8 #AML #Singapore #Compliance

Published on March 15, 2024 by the Hong Kong Monetary Authority, this policy manual sets out the minimum standards which the HKMA expects authorized institutions to adopt for the calculation of their market risk capital charges. This module is designed not just to provide details in addition to the Banking (Capital) Rules but to integrally cover all the related requirements.  #marketrisk #marketriskmeasurement #RWA #BaselIII #riskmanagement #riskmeasurement #riskassessment #riskweightedassets #capitalcharge #HKMA

On Wednesday (July 24), the European Commission adopted a delegated act to postpone by one year the application of the Fundamental Review of the Trading Book (FRTB) under Basel III standards in the EU. The new application date is now January 1, 2026. Key Highlights: - FRTB Standards: The FRTB introduces advanced risk measurement techniques to align capital charges more accurately with the actual risks faced by banks in capital markets. - Commitment to Basel III: The EU remains committed to timely implementation of Basel III standards, with the rest of the Banking Package set to take effect on January 1, 2025. - Global Alignment: The delay aims to ensure aligned implementation of Basel III standards across jurisdictions, preserving the global level playing field and preventing potential distortions in international competition. - Monitoring International Developments: The Commission's decision is based on ongoing monitoring, noting that some major jurisdictions have yet to finalize their rules or communicate their implementation timelines. Statements from Officials: European Commission: "Aligned implementation of the Basel III standards is crucial to maintain the credibility of these regulations and ensure global financial stability. The delay provides time to assess international developments and ensure a coordinated approach." Next Steps: - The delegated act is now subject to scrutiny by the European Parliament and Council for a period of three months. - The Commission will continue to monitor global implementation and assess further steps as needed. This decision underscores the importance of a well-regulated and stable banking sector for financial stability and economic growth, while ensuring fair competition in the global financial market. Follow Global Regulatory Insights for more updates! #BaselIII #FinancialRegulation #EU #BankingSector #FRTB #FinancialStability #Compliance #GRI #RegulatoryInsights

At today’s Hong Kong Banking Forum, a panel of experts from KPMG discussed how banks in the city performed in 2023, and shared their insights on some of the crucial topics for the sector going forward including GenAI, climate risk, cost optimisation and risk transformation.   We also launched the Hong Kong Banking Report 2024 at the event: https://lnkd.in/gXnJnJ7V You can read the full report here, which includes the 2023 financial results of banks in Hong Kong as well as further discussion on the key trends and themes that will impact the sector in the near future. Paul McSheaffrey, Benjamin Man, Angel Mok, Gemini Yang, Mark Longworth, Michael Monteforte #HongKong #Banking #Transformation

KPMG’s new report finds that Hong Kong banks will continue benefiting from higher interest rates through year-end. “However, the timing and pace of a rate cut are still subject to uncertainties, so banks should plan their strategies accordingly,” says Paul McSheaffrey, KPMG China’s Senior Banking Partner.   On another note, about leveraging GenAI in the banking industry, Jia Ning Song, CFA CPA FRM CAIA, Head of Banking and Capital Markets, Hong Kong, KPMG China said: “It will likely take some time for use cases to emerge, and true adoption and productivity gains from GenAI will probably become the story of 2025 and beyond.”   Read more insights from the full news story: https://bit.ly/3Le0cbR and our Hong Kong Banking Report 2024: https://bit.ly/3zwCYLz.   #HongKong #Banking #FinancialServices

An interesting article in Trade Finance Global (TFG) discussing the potential effects of #BaselIII Endgame on #tradefinance. The piece provides a good summary on the requirements most likely to impact trade finance and touches on the market liquidity concerns raised by both BAFT (Bankers Association for Finance and Trade) and the Bank of England. The authors highlight the potential disproportionate impact on #SMEs and emphasize the need for cooperation and flexibility on the part of both regulators and banks in navigating the changing #bankregulatory landscape. Certainly worth taking a few minutes to read.  

Japan's Banking Shift: A Call for Insights! In a recent development, Japan's megabanks have collectively turned away from the internal models approach (IMA) for calculating market risk capital under the Basel III regulations. The move, driven by high costs and complexity, has sparked concerns about potential herding behaviour as banks lean towards a standardised method. Surprisingly, this shift has caught even senior regulators off guard, with Tomoki Tanemura of the Bank of Japan expressing his astonishment at the unanimous preference for one model. This trend isn't unique to Japan; Canada's top banks are also sticking to the standardised approach, though some may reconsider in the future. The industry faces a critical juncture: adopt a simpler, yet potentially misaligned standardised approach or navigate the complexities of IMA. With the Fundamental Review of the Trading Book (FRTB) in effect, banks must choose between aligning risk with capital or mastering the "wizardry" of internal models. As SecFin Solutions SecFin Solutions, we're keen to explore these developments further. How can banks balance the need for accurate risk management with the practicalities of regulatory compliance? Share your thoughts and let's discuss strategies that can help navigate these regulatory waters. #secfinsolutions #BaselIII

We're not hearing too much about Basel implementation in Asia at the moment. All the Basel noise seems to be coming out of the US at the moment. But there are still some challenges facing industry in Asia: markets have been implementing the framework in different ways, timetables have diverged (with the result that parts of Asia are leading the world, which was never supposed to happen - US Basel endgame likely to make this worse) and some firms haven't even started tackling some of the new rules yet to come in (e.g. reporting requirements). Here's my feature on what is still left to do for Regulation Asia, behind a paywall I'm afraid. https://lnkd.in/dQH8aSAG