While most banking regulators in ASPAC are implementing key aspects of the regulatory reform agenda, such as on capital and liquidity, Hong Kong stands out as setting the pace in a number of areas, including: liquidity, recovery and resolution planning, customer treatment, prudent use of internal models.
This report identifies five areas where regulation, combined with other pressures, is forcing banks to make changes, these being (1) structure, (2) conduct, markets and culture, (3) data and reporting, (4) risk governance, and (5) OTC derivative reforms. The report also notes that regulators in ASPAC are taking a number of steps to try and insulate their markets from any future problems involving the global systemically-important banks.
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