Following statements by officials and various reports, clues are emerging over the future shape of the UK’s regulatory framework.

A European Union proposal for a green asset ratio for banks is being touted as a wake-up call for the industry, but bankers question its feasibility and the risk of unfair reputational damage.

The Federal Reserve and other US financial regulators are framing a slew of regulations on climate change as they hurry to deliver on ambitious policies to combat global warming set out by the Biden administration. 

Industry demand is driving the need for a new type of identifier, and one which looks specifically at digital assets

The EU’s much-criticised bank failure rules are up for re-evaluation. Experts insist the rules are currently unworkable and change is overdue, especially as Europe is poorly prepared for a Covid-19-related banking crisis.

Singapore is poised to take the next step in transitioning its interest rate benchmark in April with a ban on issuing swap offer rates (SOR) cash products, as the city-state also sticks to its target to transition most SOR derivatives by end of the third quarter, 2021 - a plan which the country’s leading bank says “is aggressive but achievable”.

Supply chain finance (SCF), or reverse factoring, is likely to come under greater scrutiny following the failure of Greensill Capital with regulators and accounting bodies in particular thinking more about transparency, according to Fitch Ratings. 

On March 26, EU and UK officials confirmed that they had agreed the contents for a memorandum of understanding (MoU) on financial services, which should lead to the creation of a Joint UK-EU Financial Regulatory Forum. 

Apart from nudging firms towards more climate friendly activities, green bonds are also beneficial in that they promote better governance and reporting standards. By Justin Pugsley

Firms with varying business models face particular operational risks and therefore may need to be subject to tailored regulations and supervision