Rising interest rate environment led to a decline in non-bank financial intermediation in 2022

29 December 2023
Knowledge Base

The Financial Stability Board (FSB) has published the Global Monitoring Report on Non-Bank Financial Intermediation 2023. The report presents the FSB’s annual monitoring exercise assessing global trends and vulnerabilities in non-bank financial intermediation (NBFI). The report mainly covers developments in 2022, when most economies experienced a rising interest rate environment in response to inflationary pressures. It describes broad trends in financial intermediation across 29 jurisdictions that account for around 85% of global GDP, before narrowing its focus to the subset of NBFI activities that may be more likely to give rise to vulnerabilities. This year’s exercise includes data enhancements on interconnectedness, sources of funding, and vulnerability metrics. Continue reading…

New tool to enable EU to withstand economic coercion enters into force

28 December 2023

Yesterday, December 27th, the Anti-Coercion Instrument (ACI) has entered into force, providing the EU with the means to deter and respond to economic coercion, and thereby better defend its interests and those of its Member States on the global stage. The ACI is first and foremost designed to act as a deterrent against economic coercion. Where coercion still happens, the tool provides a structure to respond in a well-calibrated way to stop the coercion. It gives the EU a wide range of possible countermeasures when a country refuses to remove the coercion. These include the imposition of tariffs, restrictions on trade in services and trade-related aspects of intellectual property rights, and restrictions on access to foreign direct investment and public procurement. Continue reading…

Eddie Yue: Digital trade and finance in Hong Kong – Reasserting global leadership

27 December 2023
Knowledge Base

by Eddie Yue

It is a great pleasure to celebrate the 25th anniversary of the ICCHK with the very distinguished audience here today, and the HKMA is very pleased to support today’s (30 November 2023) event. At last year’s ICCHK event, I shared our thoughts on how connecting digital islands can contribute to a more digitally integrated trade finance system, thereby addressing the pain points in trade finance and improving SMEs’ access to financing. Today, I would like to share our thoughts on a more holistic approach to digitising trade and finance in Hong Kong and how we can reaffirm our global leadership through accelerated digitalisation. Continue reading…

Will KYC become obsolete in the AI era?

23 December 2023
Knowledge Base

by Rasha Abdel Jalil

Generative artificial intelligence (AI) is reshaping our world, moving beyond its initial harmless applications to power more sinister activities. Its ability to create convincing fake content is enabling criminals to exploit personal information obtained from the vast numbers of internet-connected people for illicit purposes. In response, businesses bolster defences and often rely on Know Your Customer (KYC) as an essential step in fraud prevention. While advances like biometrics and facial recognition have undoubtedly improved identity verification, KYC isn’t foolproof. Criminals are good at finding these weaknesses and slipping past checks. Continue reading…

Corruption: The hidden gangrene for society?

21 December 2023
Knowledge Base

by Ahsan Habib

Let’s start with talking about greed which is the ethical root cause of corruption. At the root of corruption it has always been the culture of greed which enables accumulating wealth at any cost and without limits. When greed has power, we name it corruption. Corruption is a primary incubator for the global surge in organised crime. And it has a long history. Al Capone who was once one of the most wanted men for the U.S. Treasury, allegedly paid 20 cents of every tainted dollar he earned to ‘pay off’ government officials and greedy politicians. Since then greedy people never had to ‘look back’ and to stop their ‘winning journey’. 
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Basel Committee agrees to consult on targeted revisions to standards on cryptoasset and interest rate risk in the banking book

20 December 2023
Knowledge Base

The Basel Committee on Banking Supervision met virtually  to discuss a range of policy and supervisory initiatives. The Committee took stock of its review of various elements of the prudential standard for banks’ exposures to cryptoassets published in December 2022. It agreed to consult on potential targeted revisions related to the criteria for stablecoins to receive a preferential “Group 1b” regulatory treatment. The Committee will also consult on various technical amendments to help promote a consistent understanding of the standard. The Committee concluded that cryptoassets that use permissionless blockchains create risks that cannot be sufficiently mitigated at present and therefore agreed to retain the existing treatment for such cryptoassets. The consultation paper will be published this month. Continue reading…

US General Counsel & Chief Litigation Officer Summit

19 December 2023

The role of General Counsels (GCs) and Chief Litigation Officers (CLOs) has evolved significantly over the years. These legal professionals are no longer confined to the traditional role of providing legal advice and managing litigation. Today, they are strategic partners, trusted advisors, and key decision-makers in their organisations. To thrive in this dynamic landscape, GCs and CLOs need to stay ahead of the curve, constantly updating their knowledge and skills. In recognition of this need, leading event management company, marcusevans Summits, organises the exclusive General Counsel and Chief Litigation Officer Summits. Continue reading…

Navigating the UK’s cybersecurity tempest: Riding the storm of employee risks, expanding attack surfaces and limited visibility

18 December 2023
Knowledge Base

by Curtis Simpson

Much like Shakespeare’s final play, which begins with the spectacle of a storm-tossed ship at sea, UK organisations have also found themselves engulfed in a tumultuous cybersecurity tempest. At the eye of the storm is a paradox that highlights the challenges of the digital age. As organisations embrace technological advancements, they inadvertently open themselves up to an ever-growing array of cyber threats. With each new asset or system introduced, the attack surface expands. Coupled with the fact that the cyber landscape is always changing, becoming more sophisticated by the minute, organisations are struggling to keep up. Continue reading…

SIBOS 2024 in Beijing

15 December 2023

In 2024 Sibos moves to Beijing, marking the first time the event will be hosted in the Chinese capital. The Sibos community will come together from October 21 – 24 2024 at the China National Convention Centre (CNCC).

Beijing comprises a large international financial services and growing fintech sector, and will be the first time Sibos has been held in APAC since Sibos 2018 in Sydney.

For more info, see: https://www.sibos.com/about-sibos/future-sibos

€75 billion in long-term EU-Bonds in the first half of 2024

14 December 2023

The European Commission recently announced its intention to issue up to €75 billion of EU-Bonds in the first half of 2024 (H1). As in 2023, the Commission will raise these long-term funds under its unified funding approach, using single-branded EU-Bonds. The Commission will continue to complement its long-term funding operations with issuance of short-term EU-Bills. The funds raised will be used primarily to meet payments related to NextGenerationEU and notably the Recovery and Resilience Facility (RRF). The Commission’s funding plan for H1 2024 builds on a strong year of funding transactions in 2023: in total, the Commission raised €115.9 billion in long-term funds over the course of the year. This included NGEU Green Bond issuances of €12.5 billion, which brought the total amount of NGEU Green Bonds outstanding to €48.9 billion. Continue reading…