2015年-德勤中国_监管改革_16页_1mb

Regulatory Reform in the Asia Pacific: State of Play (September 2015)

Introduction

The financial crisis of 2008 has significantly reshaped the regulatory landscape for financial services firms in the Asia Pacific region. Regulatory reform has become a strategic priority, with a focus on enhancing financial system resilience, addressing systemic risks, and ensuring transparency and stability in financial markets.

Core Content

The paper outlines the current international regulatory reform agenda and its application in the Asia Pacific region, focusing on key work-streams of the Financial Stability Board (FSB). These include:

• Building resilient financial institutions
• Ending too-big-to-fail
• OTC derivatives
• Transforming shadow banking into resilient market-based financing
• Conduct and wholesale markets

Main Views and Key Information

1. Building Resilient Financial Institutions

• Basel III Implementation: Basel III reforms, including changes to capital, liquidity, and leverage requirements, have been implemented in the Asia Pacific region largely ahead of other major countries.

  • Leverage Ratio: Final calibration is expected in 2015, with the requirement becoming mandatory on 1 January 2018.
  • Liquidity Coverage Ratio (LCR): Phased in over five years starting from 1 January 2015.
  • Net Stable Funding Ratio (NSFR): Finalised in October 2014, with implementation scheduled for 1 January 2018.
  • Capital Floors: Intended to supplement the leverage ratio, with further details on calibration pending.

• Basel IV Discussion: Although not officially named, proposed changes to Basel standards are being referred to as Basel IV. These include:

  • New standardised models for credit, market, and operational risk.
  • Reduced reliance on external credit ratings and multi-factor risk assessment.
  • Fundamental Review of the Trading Book (FRTB), which includes a fourth quantitative impact study.
  • Revisions to interest rate risk treatment and credit valuation adjustment risk frameworks.

2. Ending Too-Big-To-Fail

• Systemically Important Financial Institutions (SIFIs): The FSB has identified 30 globally systemically important banks (G-SIBs) and 9 globally systemically important insurers (G-SILs).
• Total Loss-Absorbing Capacity (TLAC): Minimum TLAC standards for G-SIBs are expected to be finalised before the 2015 G20 Summit, with a phased implementation starting in 2016.
• Resolution Planning: G-SIBs and G-SILs are required to have resolution plans ('living wills') to ensure they can fail without causing systemic risk.
• Asia Pacific Considerations: Concerns exist about the global timeline for reforms, with some jurisdictions like China likely to have extended implementation periods, and the possibility of using national resolution schemes.

3. OTC Derivatives Reforms

• G20 Commitments (2009):

  • All OTC derivatives must be reported to trade repositories.
  • Standardised contracts should be traded on exchanges or platforms and cleared through central counterparties (CCPs).
  • Non-centrally cleared contracts require higher capital and margin requirements.

• Implementation Status (Mid-2015):

  • Reporting requirements have been implemented in most jurisdictions, but central clearing and exchange trading are still in progress.
  • The margining of non-cleared derivatives was delayed to September 2016, with a five-year phase-in period.

• Asia Pacific Impact:

  • Hong Kong: Full reporting not scheduled until H2 2016; clearing and margin requirements expected to start in 2016.
  • Singapore: FX trade reporting started in Q2 2015; clearing and margin requirements expected in 2016.
  • Japan: Reporting fully implemented; clearing obligation expanded in H1 2016; some yen-denominated swaps to be traded mandatorily in Q3 2015.
  • Australia: Reporting fully implemented by Q4 2015; clearing obligation for major interest rate swaps expected in H1 2016.

• Challenges:

  • Extra-territoriality and policy inconsistencies across jurisdictions have complicated implementation.
  • Markets have fragmented, particularly in the Asia Pacific region.

4. Transforming Shadow Banking

• Definition: Shadow banking refers to credit intermediation outside the regulated banking sector.
• Focus: The FSB has been working to identify and mitigate risks associated with shadow banking.
• Reforms: Attention is being given to money market funds and other shadow banking activities. Data collection is a key focus for understanding the sector's impact.

5. Conduct and Wholesale Markets

• Conduct as a Priority: In 2015, the FSB highlighted conduct as a key issue, noting that poor conduct could threaten systemic stability.
• Focus Areas: Interest rate and foreign exchange benchmarks are under review, with a shift to transaction-based and risk-free rates by 2016.
• Policy Actions: The UK's Fair and Effective Markets Review (FEMR) has influenced international conduct policy, with the BIS preparing a code of conduct for spot FX markets and IOSCO developing standards for FICC markets.
• Regional Alignment: Asia Pacific regulators are in line with these international efforts, with actions already taken and further policy expected.

Conclusion

Regulatory reform remains a central theme in the Asia Pacific financial sector, with ongoing work on Basel III and IV, ending too-big-to-fail, OTC derivatives, shadow banking, and conduct. The region is largely ahead in implementing these reforms, but challenges remain due to extra-territoriality, inconsistencies, and varying timelines. Financial institutions must closely monitor both global and local developments to align their strategies with evolving regulatory requirements.