Micro-prudential
Supervisory lessons: the need for intrusive supervision
Former Bank of Spain head of supervision Aristóbulo de Juan reveals his central principles for the (intrusive) supervision of banks in the third of a four-part series
Chinese banks fail tests as PBoC warns of ‘grey rhino’ risks
Half of banks failed the most severe stress tests; central bank says transition to new economy might unleash unexpected risks
UK banks struggle in EU-wide stress tests
Italian banks also suffer heavy losses in EBA’s most severe test conducted to date; BoE says UK faced tougher test than others
RBNZ plans tougher discipline on banks’ regulatory breaches
Proposals would see major breaches linked to disclosure dashboard, highlighting when a bank has broken the rules
Basel Committee finalises streamlined stress-testing guide
Updated principles reflect “rapid evolution” of stress-testing since 2009
Emerging market governors back targeted capital controls
Governors says capital flow measures can be important tools in some circumstances
BoE to demand senior financiers tackle climate risks
Proposals from PRA would hold senior managers accountable for climate change risks, and capital surcharges may follow
Draghi’s ‘whatever it takes’ cut bank risk-taking – BIS paper
Study examines Mexican markets to pick out effects of the ECB president’s intervention
Supervisory lessons: fault lines in prudential regulation
Former Bank of Spain head of supervision Aristóbulo de Juan highlights the lessons he has learnt about weaknesses in prudential regulation, in the second of a four-part series on supervision
‘Momentum building’ behind financial response to climate change
FSB welcomes progress on disclosures; BoE report finds many UK banks are facing up to the risks
Stronger macro-prudential intervention may be needed – Minneapolis Fed paper
Shadow banking sector takes greater risks in times of stringent macro-prudential policy for banks, researcher finds
BIS paper finds sound economy may not prevent capital outflows
Emerging markets could use pre-emptive macro-prudential policies to safeguard against capital outflows, researchers say
BIS paper weighs economic impact of macro-prudential policy
Cutting the LTV ratio leads to reduced output in emerging markets, authors find
Goldman, Morgan Stanley push for stress test changes
Balance sheets will shrink in a crisis, not grow, trading houses argue
IMF backs RBI’s Patel in call for full oversight powers
Fund urges Indian authorities to grant the central bank full powers over public sector banks
CCAR ‘apocalypse’ leads to excess bank capital, says lobbyist
Head of new trade body says Fed should average capital requirements over multiple scenarios
Banks tend to game stress tests, Fed economists say
Models tend to be subject to “strategic adjustments”, paper finds
FCA chair warns of big data-driven ‘algocracy’
Technology could lead to a society ruled by algorithms, if safeguards are not put in place, says Charles Randell
NY Fed research ‘stress tests’ household balance sheets
Authors say it is “crucial” to track household leverage; vulnerability in the US “remains elevated”
Banks stumble in second round of Fed stress tests
Fed demands Deutsche Bank take remedial action; two others told not to increase dividends
RBNZ unveils banking sector dashboard
Interactive tool gives users a comparison of banks’ regulatory metrics at a glance
The toxicology of post-crisis shadow banking
Mark Carney tempted fate in 2017 when he declared the most toxic forms of shadow banking “no longer represent a global stability risk”. Did he speak too soon?
‘Black box’ models present challenges – US regulators
US officials say they have some powers to assess AI tools, but resourcing is problematic
Short-selling behaviour can cause financial instability – Sarb report
Short-selling of Capitec Bank stock could have caused financial instability, Sarb says, but quick action stemmed crisis