Financial Stability
ECB stress tests to focus on liquidity risk
Tests will measure systemic European banks’ “survival period” without access to funding markets
Unconventional policy should be used rapidly – Fed paper
Researchers find 20–50% chance that US will face zero lower bound in next decade
Thai central bank warns of housing and debt risks
Central bank says macro-prudential policy should curb build-up of weaknesses
Data overhaul needed to enhance insolvency frameworks – IMF
Paper highlights the importance of data in analysing efficiency of current resolution policies
Fed’s 2019 stress tests to assume largest unemployment shock to date
Central bank also announces moves to enhance transparency in its stress-testing programme
Australian inquiry calls for major reforms of regulatory culture
Authorities did not enforce laws on financial sector strongly enough, report argues
Kristin Forbes urges academics to focus on macro-prudential policy
Our understanding of the tools and ability to spot new risks remain limited, professor says
Non-banks continue rise as banks lose market share
Non-bank financial firms hit a record high, at nearly half of global financial assets, FSB finds; leveraged lending increasingly an area of focus
Guinean central bank benefits from reform programme – IMF staff
Bank has improved internal systems and lowered financing of government, staff report says
Thailand and Cambodia join forces on QR code network
Central banks to pilot QR code network for retail payments
Capital requirements impact collateral demands – BoE paper
Higher capital requirements can make banks demand more collateral, authors find
RBI lifts operation restrictions on three state-run banks
Banks no longer face dividend and compensation limits after capital ratios improve
Leverage increasing among large shared loans in US, regulators warn
Fed, FDIC and OCC say lenders are relying on borrowers’ “savings and synergies”
IMF endorses Hong Kong’s tight macro-prudential measures
But risks to the outlook appear to be building, the fund says
European Commission accuses eight banks of bond market collusion
EC can fine banks 10% of their turnover if it finds “sufficient evidence” of market rigging
Liberia steps up monitoring of NPLs
New credit reference system to help financial institutions keep track of credit history and debt obligations; investigation ongoing into ‘missing’ banknotes
Bangladesh Bank eyes national savings imbalances
Growth is high and inflation “contained”, but high-yield products are draining deposits from banks
Fed to open dialogue on stress tests
Conference will discuss the “transparency and effectiveness” of the stress tests
UAE central bank and Sama partner for blockchain project
New system will provide central financial transfer system that aims to make the process of remittance payments more efficient
RBNZ demands action from insurers accused of conduct failings
Central bank finds “extensive weaknesses” in conduct and governance at life insurers
Spanish governor demands BBVA conduct thorough probe of spy allegations
The bank allegedly hired an ex-police chief in 2004 to spy on government officials and businessmen