Skip to main content

Asia Pacific Financial Regulatory Update Q4 2024

The Deloitte Asia Pacific Centre for Regulatory Strategy is pleased to share with you the key regulatory updates from our region for Q4 2024.

 

Data & technology was the most prevalent theme which AP regulators addressed in Q4. The increasing use of different forms of technology within the financial sector is requiring regulators to increase their focus on this topic. In Hong Kong, the HKMA announced partnerships with both the Banco Central do Brasil (BCB) and the Bank of Thailand (BOT) to explore cross-border tokenisation initiatives between central banks. In Japan, the JFSA published finalised amendments to the Comprehensive Guidelines for Supervision of Major Banks, to mitigate the exposure of the Japanese banking sector to cybersecurity risks.

Financial products, instruments & services remained high on the regulatory agenda for AP regulators this quarter. Refining existing regulatory frameworks and introducing new regulations allows regulators to mitigate the risks associated with certain financial products and services. In China, the National Financial Regulatory Administration (NFRA) issued a notice aimed at promoting the development of commercial insurance annuities, the notice urges insurance companies to improve their services in pension risk assessment, planning, and management, and to offer a variety of annuity payment methods and terms. In Singapore, the MAS published a consultation paper proposing changes to the capital treatment for structured products and infrastructure investments.

The proposals aim to refine capital requirements by introducing differentiated risk charges for these assets. Financial risk-related regulations were a significant priority for AP regulators in Q4 of 2024. In Japan, the JFSA published the ‘Progress Report for Improving Model Risk Managements in Financial Institutions (2024)’ which provides a summary of initiatives undertaken by financial institutions subject to the Principles for Model Risk Management since their release in 2021. In Indonesia, the OJK released a regulation updating the Liquidity Coverage Ratio (LCR) standards in line with the Basel Committee on Banking Supervision (BCBS) guidelines, the regulation aims to strengthen liquidity risk management across the banking sector in Indonesia.

Did you find this useful?

Thanks for your feedback