Financial Stability
Resolution planning needs to be broader and more intense – report
Strengthening capital alone will not prevent bank failures, Bretton Woods Committee finds
Podcast: Quantum and the Fed
The Fed's quantum computing strategy as AI accelerates Q-day
Financial inclusion improving in Tajikistan, says World Bank
Country head says institution’s partnership with central bank is also improving corporate governance
Taxing unrealised gains could support financial stability – study
BoE paper finds conventional capital gains tax cuts historically increased asset price volatility
High debt raises ‘macro-financial’ risks in Americas – BIS study
Bulletin says interest costs can result in risk premia feeding into inflation expectations
Nepal has greater stability, but now it needs growth – IMF
Fund’s mission chief says central bank reforms are among measures laying path for future prosperity
IMF paper details system-wide stress-testing methods
Economists propose adding data on bank-NBFI links and details of market microstructure
Europe’s stability at risk if AI bubble bursts – ECB blog
Correction could freeze functioning of continent’s financial markets, say central bank economists
UK has a new prime minister, but the same fiscal woes
Debt, spending and bond markets present challenges for Burnham and BoE, say former MPC members
Libyan governor sets out conditions for withdrawing resignation
Issa reportedly wants faster implementation of budget, trade reforms and halt to wage rises
Brazil’s central bank shuts down two lenders
Move comes amid broader clean-up of country’s weakest financial institutions
SNB welcomes ‘too big to fail’ reforms
Switzerland moves to close Credit Suisse-era gaps with new banking regulations
Argentina eases bank dollar lending to companies
Authorities roll back post-2001 guardrails in effort to boost credit and economic growth
CFTC uses emergency powers to overturn prediction market ban
Temporary US-wide ban would make financial instruments “waste away”, chairman says
Study compares private credit and leveraged loan market structure
Some firms better able to substitute between funding types than others, authors find
Resolution reforms may cut credit supply – CEPR paper
Easier requirements on smaller US banks helps reveal impact of ‘living wills’
Working group minutes: macro-pru calibration challenges
Many central banks are struggling to get enough data, particularly on borrowers
Thai economy needs monetary, fiscal, financial policy mix – BoT
‘Single policy tool insufficient to mitigate more frequent shocks,’ central bank says
Eurozone banks get reality check after ECB geopolitical stress test
Financial institutions struggling to embed geopolitical risks into resilience testing, ECB says
Central banks should intervene with a ‘market backstop’ – paper
New research suggests optimal policy response to market freezes
Basis trade loses its bite as banks move in
Returns on popular hedge fund strategy dwindle to as little as three basis points, while dealers make use of softened capital rules to replicate the trade