Financial stability
Financial Stability Benchmarks 2024 report – seeking sounder banks
Banking regulation remains a work in progress for many central banks, but staffing is a problem
Well over a decade on from the global financial crisis, banking regulation is still a work in progress in many jurisdictions. Benchmark data shows that nearly 60% of central banks say their country needs additional banking regulations. Worsening this challenge, a large proportion of central banks report inadequate staffing (38.7% of respondents) or inadequate budgets (33.3%).
Charts
Prudential tools
Reserve requirements are the most widely used macro-prudential tool worldwide, though they are also used as monetary policy tools in many cases. Loan-to-value ratio caps are also widespread, but mostly in high income and upper-middle income jurisdictions. Curbs on foreign lending are common in the upper-middle income category but less so in high income countries.
For the full breakdown, use the benchmarking service’s interactive charts to explore the data.
Model banks analysis – Financial Stability Benchmarks 2024
Further breakdowns of the data highlight patterns in governance, regulatory reform and cyber risk
Previous years
Financial Stability 2024
Financial Stability 2023
Financial Stability 2022
Financial Stability 2021
Do central banks need more tools to regulate the financial system?
Policy-makers from Armenia, Thailand and New Zealand share perspectives on how to keep up with the ever-changing industry
Lessons learned on macro-pru policies
Tools are proving their worth although use cases vary by country; role in over-arching frameworks remains a challenge
Financial Stability Benchmarks 2024 – model banks analysis
Further breakdowns of the data highlight patterns in governance, regulatory reform and cyber risk
Financial Stability Benchmarks 2024 report – seeking sounder banks
Banking regulation remains a work in progress for many central banks, but staffing is a problem
Cyber crime is central banks’ top financial instability risk
Upper-middle income countries more likely to be wary of foreign exchange crisis
Supra-national stress tests less common in middle income countries
Most central banks conduct stress tests of banks more than once a year
Majority of central banks carry out cyber defence exercises
Respondents suggest ways to improve exercises’ effectiveness in building up resilience
Cyber attacks increased in most countries over past two years
Central banks want cyber experts, awareness campaigns and collaborations to mitigate risks
Central banks say co-operation on AML/CFT effective
But some still want improved data sharing, surveillance and relationships
Rising AML/CFT risks reported in 40% of jurisdictions
But majority of central banks empowered and well equipped to mitigate risks
Non-banks generally seen as lesser threat than banks
Central banks much more likely to want new tools to tackle risks in the banking sector
Authorities resolved median of one bank over past decade
Central banks suggest measures for resolving failed banks