Regulations
Regulatory bodies
State Administration for Market Regulation | SAMR is responsible for the regulation of market competition, intellectual property, monopolies, and drug safety in China.
Bank Negara Malaysia | BNM is the regulator of all financial institutions in Malaysia. It gathers and published key financial statistics on its Open API.
- Base rate: The BR is the minimum interest a bank can charge consumers. It includes the bank's cost of funds and Statutory Reserved Requirement (SSR) cost. Loans after 2015 are referenced against the BR. BRs are affected by the KLIBOR.
- Base lending rate: Interest rates of loans before 2015 are referenced against the BLR.
- Effective lending rate: The ELR is the interest rate that consumers pay for a loan. It takes into account the bank's base rate plus cost of funds. Banks are required to publish the ELR for the standard 30 year housing loan of MYR350 000. An interest rate of 1.5% and base rate of 4% will sum up to an ELR of 5.5%.
Financial Transaction Reports and Analysis Centre Pusat Pelaporan dan Analisis Transaksi Keuangan (PPATK) Indonesia's financial crime unit. Equivalent of Malaysia's Financial Intelligence and Enforcement Department (FIED) in Bank Negara.
Securities and Exchange Board of India | SEBI is the securities market regulator for India.
Financial Supervisory Commission (Taiwan) | The Financial Supervisory Commission (Taiwan) is the main financial regulator for Taiwan's banking industry. It is subordinate to mainland China which influences its policies.
Regulations and Guidelines
MiFID | Markets in Financial Instruments Directive is a regulation that requires EU financial markets participants to increase transparency.
MiFID II | Calls for transparent pricing, reporting of market abuse, trade transparency, regulated use of electronic circuit breakers.
Basel III | Basel III is a banking regulatory outline for international banks that resulted after the 2008 financial crisis. The regulation targets minimum capital requirements, supervisory review and market discipline. One of the goals is to ensure banks can withstand financial shock.
Dodd-Frank Act | The Dodd-Frank Act was introduced after the 2008 financial crisis to provide regulatory oversight, consumer protection, and to manage systemic risk in the financial system. The act prevents banks from gambling with consumers' money, monitors risky derivatives, and provides oversight to credit rating agencies.
Volcker Rule The rule states that commercial banks cannot use customers' money to invest in high-risk markets or engage in prop trading. The rule is part of the Dodd-Frank Act and was proposed after the 2008 financial crisis.
LIBOR | The London Interbank Offered Rate is the average interest rate at which banks charge each other for borrowing money. LIBOR is calculated at the end of the day by collecting self-reported interest rates from banks and averaging them. An increase in LIBOR rates would increase interest rates of credit cards, car loans, and variable mortgage interest rates, making it expensive for consumers. Banks borrow cash from each other to meet regulations which require them to maintain a certain level of cash daily. LIBOR equivalents include the EURIBOR (Europe), SHIBOR (Shanghai), TIBOR (Tokyo), and MIBOR (Mumbai).
