Systemic risk
Central bankers must grapple with climate complexity, panel says
But regulatory frameworks should not be changed to boost “green” agenda, expert says
Bank profitability is associated with lower systemic risk – IMF paper
Over-reliance on non-interest income can increase institutional and systemic risk, researchers find
BoE unveils ‘systemic risk buffers’ for UK banks
Aims to ensure adequate capital within UK ring-fenced firms, as well as at global level
The IFF China Report 2019
Insight and perspectives from the world's leaders, premier policy-makers and financiers
The IFF China Report 2019: Financial deepening, fintech development and green financing
The past 40 years have seen China transform from a recipient of global aid to a major economic centre in its own right. China is now seeking to deepen its markets, gradually open its borders to global financial flows, and promote new and innovative forms…
Central banks urged to take four key climate actions
Network for Greening the Financial System releases its first comprehensive report
IMF paper sets out growth-at-risk framework
Tool for assessing macro-financial conditions likely to enhance surveillance, authors say
Climate change: a new challenge for financial stability?
Do climate change and the transition to a low-carbon economy pose a risk to financial stability? What is the role of central banks?
ECB paper presents new financial crisis early warning system
Model aggregates five types of systemic risk indicator, researchers say
Latest restructuring boosts the PBoC’s regulatory clout
Hui Feng says the restructuring of the PBoC carries “profound implications” for the central bank’s role in policy-making
Leverage increasing among large shared loans in US, regulators warn
Fed, FDIC and OCC say lenders are relying on borrowers’ “savings and synergies”
Establishing the Fed worsened the Great Depression – St Louis Fed paper
Setting up lender of last resort reduced banks’ incentive to manage risk, paper argues
Individual bank diversification can increase systemic risk, researchers find
Banks that are not systemically important can be ‘systemic as a herd’, authors say
Yellen ‘greatly concerned’ over regulation reversals
Fed unveils proposal for relaxing stress test requirements
Book notes: Macroprudential policy and practice, edited by Paul Mizen, Margarita Rubio and Philip Turner
An important overview of the current state of thinking about macro-prudential policy, but uncertainties remain about the current allocation of financial stability responsibilities
Chinese authorities toughen rules on systemic firms
PBoC expands definition of systemically important firms and gains new powers
Agent-based models: a new frontier for macroeconomics?
Agent-based modelling is opening up new possibilities for economics, but the discipline is still struggling to move from the sidelines to the mainstream
FCA sets out stance on climate change
Firms may be asked to publicly disclose how they manage climate risk
Cyber security should become part of a firm’s culture – Irish deputy governor
Warnings must not get diluted as they pass up the chain, Sibley says
Insights from network analytics in suptech
With regulators leveraging technological innovations to move towards informed, data‑driven decision‑making and automation, supervisory technology is attracting enhanced interest. Kimmo Soramäki and Phillip Straley examine how regulators are gaining…
Fed paper presents method to better estimate systemic risk
Authors find their approach outperforms several commonly used systemic risk indicators
Next financial crisis “will be brewing” in shadow banking – Bullard
Silicon Valley disruption represents threat to financial stability; Fed has limited powers to counter it despite FSOC and tough new bank rules, says Eighth District president
Fed acts to limit largest banks’ mutual exposures
Largest banks in the US face limits on their exposures, but smaller banks are exempt for now
Book notes: Edge of chaos, by Dambisa Moyo
John Chown applauds Moyo’s analysis of how the current democratic framework is failing