This week's risk management news includes FSS's plan to increase banking supervision in high-risk sectors, EBA's second round of stress tests, IMF's decision to conduct stress tests, and Kuwait Central
Bank's risk assessment upgrade for banks
Korea’s FSS to increase bank supervision in high-risk sectors The Financial Supervisory Service, Korea’s financial regulator, will increase bank supervision for foreign exchange positions, construction loans and home loans to curb possible financial risks. The regulator will conduct annual assessments of local and foreign banks’ foreign exchange positions and monitor non-performing construction loans. Additionally, it may restrict banks from extending the grace period for home loan repayments to prevent excessive borrowing.
IMF to conduct stress tests for banks The International Monetary Fund (IMF) will be conducting stress tests on big banks to evaluate their robustness. The stress tests will start in Britain, and will move to Sweden, the Netherlands, Germany and Luxembourg ahead of more comprehensive tests by the European Union. The IMF has decided to conduct its own stress tests in light of a recent study by Standard & Poor’s which found that large global banks have insufficient capital to withstand a financial crisis.
Kuwait’s central bank to upgrade risk assessment for banks Central Bank of Kuwait is planning an upgraded risk assessment system for the off-site monitoring of banks, updated stress tests and early warning systems to help banks enhance their internal risk management systems. The central bank is also planning to set up a financial stability unit to maintain financial stability and cope with future financial crises.
Re-disseminated by The Asian Banker
Please login to read the complete article. If you already have an account, you can login now or subscribe/register.