Banking Regulation

Banking regulation covers capital adequacy, risk management, corporate governance and consumer protection, with the aim of maintaining financial-system stability. Taiwan’s Financial Supervisory Commission has recently focused on supervisory priorities including financial inclusion. The United States is revising CAMELS ratings and the supervisory framework for large banks while reviewing the credit risks associated with undocumented immigrants, bank “debanking” and digital assets. The European Central Bank has required banks to submit plans for defending against AI-related cyberthreats. Revisions to the Basel framework and court rulings could also change the scope of regulation, making their effects on bank operations, lending and financial stability important to watch.