Financial Stability
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
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
Banks must keep up with high-speed traders – BoE’s Jackson
Risk has migrated to a part of the system where execution is measured in microseconds, official says
AI could amplify financial stability risks – BIS’s Zhang
Technology may increase speed and intensity of how stress propagates through system, says official
Life insurers increasingly exposed to systemic risk – BoE paper
Authors say European firms’ ‘non-traditional activities’ may call for new regulation
Book notes: 1929: the inside story, by Andrew Ross Sorkin
A compelling narrative offering fresh perspectives on the key characters, events and implications of the great crash
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
Legal threat to Fed accelerates Asean+3 contingency planning
AMRO chief economist says central bank independence of paramount importance for stability
Bailey underscores support for Powell
BoE governor also points to potential spillover risks to UK from events in US
Tech-driven global growth vulnerable to shocks, IMF warns
Sharp market corrections could ensue if productivity gains from AI do not meet expectations
BoE to ‘streamline’ supervision as part of growth push
PRA has been easing some regulations as government looks to cut cost of compliance
BoE’s Ramsden defends UK’s ring-fencing regime
Deputy governor says rules remain “critical” to regulatory framework amid review to reform them
Sticky fears about sticky inflation
Survey finds investors are not yet ready to declare victory on inflation – with good reason
New England is pocket of recession risk in US – Fed study
Researchers say overall threat of national downturn is low, but requires monitoring nevertheless
Philippines extends incentives for sustainable lending
BSP says banks can have up to 40% credit exposure for green projects for another two years
State Bank of Vietnam lowers credit growth target
Central bank says lenders should ‘strictly control’ loans to risky sectors
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