We recently argued systemic risk in EM Asia is contained, but concentration risk exists in countries like Indonesia. Positioning is heavy in rupiah-denominated bonds that see more volatile nonresident flows than dollar bonds. Indonesia flows are quite sensitive to China shocks, but adequate reserves and high FDI reduce vulnerability.
The IIF surveyed 54 banks and 5 insurers on their adoption of Machine Learning techniques in Anti-Money Laundering, identifying considerable improvements in reducing false positives and enhanced transaction monitoring.
Given the rapid re-leveraging of the U.S. non-financial corporate sector in recent years and its potential implications for financial stability, we have built on our Global Debt Monitor Database to develop a composite index to assess financial strengths and vulnerabilities in the sector.
Bali themes--policy dissonance, risks for growth and financial stability. Market expectations for future short-term rates are beginning to outpace the Fed—turbulence ahead? Robust leveraged loan and “covenant-lite” issuance in 2018. As the China-U.S. rate differential turns negative, portfolio debt flows to China slow sharply in September
Nomura’s Yuji Nakata and Bank of Queensland’s Peter Deans join FRT from Bali, during the IIF Annual Membership Meeting and IIF Asia-Pacific CRO Forum, discussing what the digital transformation of banking means for the risk management function (Brad Carr)
