RISK MANAGEMENT

Banks face stress test on climate

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Original article by Michael Roddan
The Australian – Page: 1 & 2 : 20-Dec-19

Australian financial services providers may be required to disclose their exposure to climate risks in their financial statements. It is amongst reforms that are likely to be implemented by the Australian Prudential Regulation Authority and the Reserve Bank of Australia, which include subjecting banks and insurance companies to stress-testing with regard to climate change-related risks. The reforms have been proposed by the Network of Central Banks & Supervisors for Greening the Financial System. The RBA has been a member of it since 2018, while APRA has observer status.

CORPORATES
AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, RESERVE BANK OF AUSTRALIA, NETWORK OF CENTRAL BANKS AND SUPERVISORS FOR GREENING THE FINANCIAL SYSTEM

Traders pour into gold as tensions rise

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Original article by David Rogers
The Australian – Page: 32 : 13-Apr-17

The price of gold has rallied in recent weeks as growing geopolitical tensions prompt renewed investor support for "safe haven" assets. Meanwhile, the yield on 10-year US Treasuries recently reached a five-month low and it is again testing this level, while the VIX volatility index has risen to its highest level in five months. However, Joseph Capurso of the Commonwealth Bank says the continued strength of the US dollar suggests that recent financial market trends do not constitute a "global risk-off event".

CORPORATES
CHICAGO BOARD OPTIONS EXCHANGE VOLATILITY INDEX, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, MORGAN STANLEY CAPITAL INTERNATIONAL ALL COUNTRY WORLD INDEX, UNITED STATES. EXECUTIVE OFFICE OF THE PRESIDENT, STANDARD AND POOR’S ASX 200 INDEX, STANDARD AND POOR’S 500 INDEX, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, AMP CAPITAL INVESTORS LIMITED

Big four looking good on capital

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Original article by Tony Boyd
The Australian Financial Review – Page: 40 : 5-Jan-17

Australia’s major banks are unlikely to be affected by a dispute between the European banks and the Basel Committee on Banking Supervision. Predictably, the European banks are resisting the committee’s stricter capital requirements. The committee stated on 4 January 2017 that aid the regulatory reforms would be delayed as more time is needed to finalise some of their aspects. Unlike the European banks, the big four Australian banks have sufficient levels of common equity tier 1 capital to meet the committee’s new requirements.

CORPORATES
BANK FOR INTERNATIONAL SETTLEMENTS. BASEL COMMITTEE ON BANKING SUPERVISION, DEUTSCHE BANK AG, SOCIETE GENERALE SA, UNICREDIT SPA, AUSTRALIAN PRUDENTIAL REGULATION AUTHORITY, FITCH INVESTORS SERVICE INCORPORATED, AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED – ASX ANZ, WESTPAC BANKING CORPORATION – ASX WBC, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NATIONAL AUSTRALIA BANK LIMITED – ASX NAB

Cyber risk described as growing threat to mergers, acquisitions

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Original article by Ruth Liew
The Australian Financial Review – Page: 24 : 1-Sep-15

Cyber security was a business risk that should be in the hands of senior executives, not relegated to the IT department, a conference has been told. Lawyers, investment banks and governments needed watertight cyber rules around their mergers and acquisitions deals. Toll Holdings and Macquarie Group executive director Nicola Wakefield-Evans told the King & Wood Mallesons event that cyber resilience was a key issue for board members as cyber crime grew.

CORPORATES
KING AND WOOD MALLESONS, TOLL HOLDINGS LIMITED, MACQUARIE GROUP LIMITED – ASX MQG, TELSTRA CORPORATION LIMITED – ASX TLS, BHP BILLITON LIMITED – ASX BHP, POTASH CORPORATION OF SASKATCHEWAN INCORPORATED, JP MORGAN CHASE AND COMPANY, PRICEWATERHOUSECOOPERS, TARGET CORPORATION, SONY CORPORATION

Diversity best defence against investment risk

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Original article by Sally Rose
The Australian Financial Review – Page: 13 & 18 : 16-Mar-15

Aberdeen Asset Management’s chief investment officer Anne Richards regards herself as an "activist investor" with regard to the issue of women directors. She believes that greater boardroom diversity can reduce investment risk, but says mandatory quotas for female directors is not necessarily the solution. Richards will launch Australia’s Women on Boards 2015 Diversity Index on 16 March 2015

CORPORATES
ABERDEEN ASSET MANAGEMENT LIMITED, WOMEN ON BOARDS, FTSE 100 INDEX