Financial Stability
IMF to provide Sri Lanka with additional $347m in financing
Mission chief says central bank should continue to be independent and build reserves
Sovereign defaults fell in 2024, says Bank of Canada study
However, debt service payments still high as interest rates remain elevated
Simplifying rules may hinder EU single market – BIS’s Restoy
FSI chair says supervisors must be mindful of trade-off from making banking regs less complex
Bostic: firms tell me they’re eager to replace humans with AI
Atlanta Fed chief says technology will have a ‘unique’ impact on workers at all skill levels
BoE warns of AI bubble in equity markets
Record of latest FPC meeting compares ‘stretched’ stock values today to levels before dotcom crash
FX market becoming stronger transmitter of stress, IMF warns
Fund probes changing structure of world’s ‘largest and most liquid financial market’
Lagarde: ECB should supervise non-banks to prevent rerun of 2008
Monetary policy would benefit from more holistic prudential approach, president says
FX turnover surges 28% to nearly $10 trillion a day – BIS
Triennial survey finds euro has overtaken dollar in OTC interest rate derivatives market
AI could fundamentally alter market dynamics – Fed study
Tech is not purely algorithmic as it has inherited human biases, say authors
Book notes: Bankers’ trust, by Aditi Sahasrabuddhe
A novel investigation into how trust among central bankers – or lack thereof – helped and worsened crises of the past
Weak dollar mitigated April tariff shocks – BIS’s Maechler
Greenback’s depreciation boosts risk appetite and lowers import costs, deputy general manager says
NBER paper explores drivers of collateral prepositioning
Authors ask why US banks choose not to pledge all their available collateral at the Fed
Book notes: Private finance, public power, Peter Conti-Brown and Sean H Vanatta
A detailed history of bank supervision in the United States from 1789 to 1980
BIS warns of elevated equity prices amid ‘sanguine’ markets
High stock valuations “sit oddly” with fiscal sustainability concerns, according to quarterly review
US consumers’ expectations of finding work hit new low – study
Mean perceived probability of a newly unemployed person finding a job fell to 44.9%
AI opens new possibilities to approach core mandate – Nagel
Bundesbank president says technology enables central banks to deal proactively with stability risks
Bank of Burundi to overhaul country’s market operations
Central bank teams with LSEG to upgrade east African country's financial market infrastructure
AI ‘explainability’ a growing problem for supervisors – paper
Better guidance may be needed on model risk management, Basel-based FSI says
ECB working to simplify banks’ annual health checks – Donnery
Srep will become more tailored to lenders, says supervisory board member
Financial Stability Benchmarks 2025 – model banks analysis
Data breakdowns reveal differences in risk perceptions, staffing and AI usage
Geopolitics, crypto and inequality are systemic risks – ESRB panel
Geopolitical risk is shaping markets, institutions and the financial system, says Olli Rehn
BoE economists outline model of liquidity-solvency spirals
Model aims to test banks against the sort of interactions that led to collapse of SVB and Credit Suisse
Lagarde says US-EU deal lowered uncertainty ‘considerably’
ECB president voices concern over Fed independence, French debt
Financial Stability Benchmarks 2025 – executive summary
Data sheds light on central banks’ assessment of tariff risks and other financial stability threats