Articles by Central Banking staff
Cyber security and adapting legacy systems are top tech challenges
Recruiting talent and regulating the fast-paced sector are also difficult
Legal mandates for CBDC issuance remain rare among central banks
Some await parliamentary approval as framework examination commences in their jurisdictions
Fintech Benchmarks 2024 Charts
Take a deep dive into the Fintech Benchmarks charts, which have just been released for 2024.
More than half of central banks have a fintech strategy
Implementation challenged by poor regulation and talent scarcity
Central banks face challenges in hiring and retaining fintech staff
Over half of institutions recruit fintech professionals internally
Risk Management Benchmarks 2024 – executive summary
Data reveals central banks’ risk governance structures and strategies, as well as the top risks in 2024
ISO 31000 and COSO–ERM remain central banks’ leading standards
Central banks from high income countries less likely to use COSO–ERM
Mean risk management salary greater in high income countries
Salaries average $72,738 in rich countries but $33,464 in upper-middle income nations
Wage growth ‘has not impacted US inflation’, says Boston Fed
Study finds pay still has some way to go before reaching a level that would affect consumer prices
Most central banks have difficulty hiring skilled cyber security staff
Respondents highlight pay disparity, skills gap and technological advancements as factors
Monetary policy is tight enough, says head of Atlanta Fed
Raphael Bostic said he expects rate cuts in Q3, but could advocate for them sooner
Exit rate of risk management staff averages over 10%
Workers in middle income institutions tend to leave at a higher rate
Operational and financial risk units have largest staff
Upper-middle income institutions have largest average total number of risk employees
Cyber security remains critical concern for risk managers
High income central banks put greater emphasis on market and credit risks
Enterprise-wide risk management widespread among central banks
Few institutions maintain use of department-level and damage limitation approaches
Most central banks lack climate risk units
Just under half of institutions say they have difficulty hiring staff with matching skills
Cyber and fintech risk policies rejigged in a few central banks
Departmental structure varies across jurisdictions
Central banks should co-ordinate policy – Minneapolis Fed paper
Policy-makers should consider decisions’ effects on world real rate, authors say
Minority of central banks altered risk functions in past two years
Amendments emanate from factors including technology and climate change
Communicating uncertainty helps curb expectations – BoC paper
But conveying uncertainty about inflation weakens link between inflation and spending plans
Few central banks lack risk management strategies
Two respondents do not have a risk strategy and slightly more lack a defined risk tolerance
GRC systems remain scarce among central banks
Minority of central banks project adoption this year, others aim to upgrade
Most heads of risk management units report to governor or board
Risk management committees are more likely to exist in central banks than chief risk officers
Risk management units are most often centralised
Operational risks are the most covered area across participating jurisdictions