This week's risk management news includes Bank Julius Baer's new CRO for Asia & Middle East, CBRC's new rules for banks, and CBN's risk-based system for bank supervision
March 02, 2011 | The Asian Banker Editor
Bank Julius Baer names CRO for Asia & Middle East
Bank Julius Baer has named Peter Siber as Chief Risk Officer (CRO) for Asia & Middle East. Peter, previously head of credit advisory & structuring and deputy group head of credit at the bank’s Zurich headquarters, will be based in Singapore. He will be report to both Dr Thomas Meier, CEO of Asia & Middle East and Bernhard Hodler, Group CRO.
CBRC drafts new rules for banking sector
China Banking Regulatory Commission (CBRC) is drafting new regulations concerning capital adequacy, provision and leverage ratios as well as liquidity management to better manage financial risks. Leverage and liquidity ratios will be included in regulatory parameters, with the required leverage ratio set at 4%. Banks will also be required to maintain a liquidity coverage ratio above 100%. Additionally, the provision ratio on outstanding loans will be set at 2.5%. The new regulations will also encourage banks to continue increasing their capital adequacy ratio which is currently set at a minimum of 8%.
CBN adopts risk-based supervision for financial institutions
The Central Bank of Nigeria (CBN) has adopted a risk-based supervision system to determine the financial health of financial institutions in the country. The new system, will be applicable to all banks, mortgage and finance houses as well as to credit bureaus, will focus supervision on sectors which carry significant risks and on institutions with high risk profiles. CBN has also requested financial institutions to use the new risk system as a basis to develop their own individual risk management frameworks.
Re-disseminated by The Asian Banker
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Risk And Regulation Working GroupKeywords:Bank Julius Baer, CBRC, CBN