Financial Stability
Fed’s Bowman: Basel has driven banks out of traditional loans
Vice-chair for supervision renews call to bring mortgage lending back to banking sector
Middle East conflict creates new uncertainty for the Fed
Additional inflationary risks could jeopardise Trump’s hopes for rate cuts, experts say
Middle Eastern central banks respond to Iran crisis
Israel unveils relief package for firms and citizens, while Turkey suspends repo auctions
Book notes: Before the Fed, by Jon Moen and Mary Tone Rodgers
A significant contribution to understanding private-sector financial crisis responses, relevant to today’s lender-of-last-resort function
Fed governors extol AI’s ‘transformative’ potential
Waller sounds bullish note on technology, though Cook caveats optimism by warning of impact on jobs
DNB implements ‘geopolitical resilience programme’ for banks
Chair of supervision says Dutch central bank must be able to perform core tasks in ‘extreme scenarios’
Monetary policy in Asia since the pandemic
Asean+3 nations must plan to tackle ‘disturbance’, ‘structural’ and ‘radical’ uncertainty using a disciplined policy mix to preserve price stability amid global shocks, writes Dong He
Brazil’s central bank shuts down lender connected to Banco Master
BCB says bank had “compromised economic and financial situation”
Economists warn of emerging ‘sovereign-stablecoin nexus’
Researchers model regulatory options as stablecoins become intertwined with core markets
More financial integration key for Europe’s resilience, says Nagel
Bundesbank president says eurozone can adapt to new geopolitical reality
ECB analysts call for European supervision of asset managers
Largest groups’ balance sheets and cross-border activity merit closer look, blog argues
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
Chicago Fed study points to AI tail risk for US banks
Authors warn that a risk event could spill across multiple industries
Repeat of past mistakes fuels risk of new crisis
Jesper Berg and Hans Geeroms argue that bank lobbying has succeeded in securing a dangerous softening of rules
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
This is not quite Japan’s ‘Truss moment’ – ex-BoJ board member
Experts add that central bank is unlikely to have to intervene directly in sovereign bond market
MAS says support for IMF’s anti-poverty work aids stability
Central bank to provide $36.9m to aid fund’s work in Sudan and other underdeveloped countries
EU banks need more control over their data – DNB board member
Chair of supervision says tech, finance and public sector need to work together to reduce dependencies
Most non-centrally cleared repos have zero haircuts, FSB warns
New report provides sweeping view of $16 trillion market and suggests ways to close data gaps