Research/Financial Stability
Liquidity rules partly pay for themselves – BIS paper
Banks benefited from lower funding costs after implementing the liquidity coverage ratio, authors find
BIS paper sounds alarm on gaps in crypto intermediary regulation
International co-operation a challenge as expanded activities risk contagion, authors say
Hedge ratios help explain swings in dollar – BIS study
Data on eurozone funds helps explain currency’s reaction to tariff announcements, authors say
Debt metrics fail to reflect financial instability – BIS paper
Author says standard measures of government debt sustainability omit key market dynamics
Deposit insurance only one part of safety net – IMF study
Co-operation with resolution regime crucial to effective protection, researchers say
BIS study uncovers credit crunch driven by geopolitics
Paper finds that lending recovers more slowly than trade following shock events
Basel Committee warns of rollover risks in SRT markets
Investors’ appetite for synthetic risk transfers could lessen during downturns, organisation says
Banks’ internal markets impact wider funding conditions – paper
Repos from affiliates play key role in channelling liquidity to financial system, authors find
Study calls for twin-pronged macro-pru approach to shocks
Higher capital and CCyB are both needed to mitigate threats to stability, say Bank of Italy authors
Life insurers increasingly exposed to systemic risk – BoE paper
Authors say European firms’ ‘non-traditional activities’ may call for new regulation
Derivatives hedging can weaken effect of capital rules – BIS paper
Banks increase use of credit default swaps when counter-cyclical buffers rise, study finds
Geopolitics a key focus for ECB supervisors – blog
European banks have fared well so far against shocks but must stay vigilant, senior officials write
Fed study sounds alarm over algorithmic rises in credit limits
Researchers say US lenders are extending too much credit to subprime borrowers
New England is pocket of recession risk in US – Fed study
Researchers say overall threat of national downturn is low, but requires monitoring nevertheless
Private credit to play bigger role in AI boom – BIS study
Hidden leverage may dispel notion that sector poses only moderate stability risks, authors say
‘Green’ banks face lower repo rates – ECB study
Researchers say climate transition risk has implications for financial stability and policy transmission
European lenders are making polluters pay – ECB study
Firms looking to fund projects near ‘biodiversity-sensitive’ areas face worse borrowing conditions
BoE paper explores redistribution from macro-pru tools
Evidence suggests there are stability benefits but also costs from using borrower-based tools
NBER paper maps out international financial network
Rey and Stavrakeva show equities markets play crucial transmission role
Fed researcher makes case for liquidity support for non-banks
Central clearing, liquidity regulations and balance sheet policies may be key, says author
Diverse opportunities lead to more resilient labour markets – study
Minneapolis Fed authors say economic concentration makes it harder for areas to recover from shocks