Financial Stability
US corporates ‘substantially’ more leveraged than thought – Dallas Fed researchers
Using a broader measure than debt-to-GDP, levels are almost double, they say
RBNZ points to high private debt as main financial stability risk
New Zealand central bank stresses climate change impact on insurance industry
Hong Kong’s first green bond issuance oversubscribed
HKMA’s $1bn five-year green bond is highly popular; yield drops relative to initial pricing
Costa Rican central bank backs government’s external financing plans
Move would reduce pressure on domestic rates and boost economic growth, it says
Universal deposit insurance lowers consumer fears – Bundesbank paper
Authors study major change in Germany’s bank deposit provision
BIS’s da Silva says climate change is an ‘epistemological break’
Climate change is starting to revolutionise investors’ thinking about risk, says deputy chief
Book notes: Currency, credit and crisis, by Patrick Honohan
Honohan brings an analytical eye to the measures taken to avert a deep crisis in Ireland
RBI toughens liquidity rules for non-banks in wake of 2018 stress
Default by IL&FS triggered liquidity problems across financial markets
ECB paper looks at short-term costs of higher capital ratios
Monetary policy should cushion blow caused by moving to higher capital requirements – researchers
BoE may impose capital floors on UK firms – PRA chief
Sam Woods says some leveraged loans are based on “heroic” risk assumptions
FSB launches review of ‘too-big-to-fail’ policies
Bundesbank’s Claudia Buch to lead evaluation of post-crisis reform efforts
RBNZ review lends support to loan-to-value limits
Macro-prudential tool has been helpful in promoting financial stability, study finds
Local shocks may outweigh global factors for EMEs – ECB paper
US monetary shocks less important than much recent literature argues, researchers say
Indian central bank to set up new supervisory body
Move follows tension between RBI and government over banking supervision
IMF publishes first review of programmes since financial crisis
Directors say growth assumptions are often unrealistic and call for closer look at debt restructuring
Cyber crime is ‘present danger’ for financial system – BoE deputy
Sam Woods emphasises need for more widespread stress-testing of cyber security
Powell plays down fears about record levels of corporate debt
Fed chair’s remarks strike similar chord to those of Ben Bernanke in 2007, but Powell says this time is different
BoE seeks to make financial stability more transparent – Brazier
Policy-makers look to improve communications and design tests more systematically
BIS paper finds cross-border links between monetary and macro-pru policy
Authors discover “significant interactions” between policies
ECB criticises revised Romanian tax law
New proposals could harm banks and distort lending, ECB says
New Zealand banks attack RBNZ capital proposals
Central bank proposal would almost double banks’ minimum capital requirements