Credit conditions
Information can substitute for collateral, BoE paper finds
Strong lending relationships can insulate a firm during booms and busts
Lagarde calls for an end to trade tensions
IMF chief says countries should ‘fix’ global trade system, not ‘destroy’ it
Standard-setters can only partially support inclusion – BIS’s da Silva
Standard-setters can balance risks and opportunities, but cannot tackle deeper structural issues
Private debt and housing prices are main financial challenges in Norway
Rising commercial property prices also a potential threat to financial stability, central bank says
US regulatory sanctions lead to banks cutting credit costs – Finnish paper
Sanctioned banks cut loan costs by 22bp on average, researchers find
Fed assessing effects of community bank closures in rural areas – Quarles
Decline in community banks over last two decades concentrated in institutions with less than $100 million
Political instability main risk for Brazilian banks – central bank
Financial system has expanded credit without increasing risk, Central Bank of Brazil says
Hungary prepares to normalise its array of policy instruments
Central bank reshuffles its wide range of unconventional instruments and launches lending facility
Swiss banks are more resilient now than before crisis – Zurbrügg
‘Too-big-to-fail’ especially relevant for Swiss economy due to strong role of few major banks
Reserve requirements an effective tool to balance capital flows – BIS research
Higher interest rates encourage more inflows, but adjustments in reserve requirements can strike a better balance
Spanish banks strongly influenced by knowledge of firms, paper finds
Banks’ understanding of clients helped smooth credit contraction during financial crisis – researchers
Eurozone mortgage lending back to pre-crisis levels – ECB
New loans reached 4.5% of GDP in the year to March 2018; average since 2001 is 4.4%
Kenyan banks forced to reveal hidden loan fees
Kenya’s central bank begins effort to repeal interest rate cap
Competition and profits biggest factors in eurozone credit supply – ECB
Robust growth is expected in all main areas of credit in next quarter, says ECB
Financial literacy of Italians below G20 average – Bank of Italy
Less than half of survey respondents are able to calculate a simple interest rate
Employer-employee loans can cut credit risk - Minneapolis Fed article
Research looks at Minnesota scheme
RBI pledges to create public credit register
Existing system is fragmented, making it hard to accurately assess a borrower’s credit history
Switzerland weighs bold monetary experiment
On June 10, Switzerland will vote on whether to revolutionise its monetary system and hand the central bank a monopoly on money creation
UK’s FCA to act on banks using overdrafts as revenue source
Regulator proposes rules to improve transparency around the cost of credit, with plans to ban fixed fees if necessary
Lowe says RBA is closely monitoring China’s shadow banks
Interconnections mean trouble in Chinese markets would likely spill into Australia, governor says
Belize must act to escape cycle of defaults – IMF staff
The country has completed a third debt restructuring in a decade, but IMF research says fiscal consolidation is needed to put debt on a “clear downward trajectory”
Structural measures are boosting competition – Bank of Israel report
The banking supervision department is looking to increase competition in the banking sector
Technology can support comprehensive credit risk management – panellists
The expansion of balance sheets since the crisis has created new challenges for central banks
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?