Financial Stability
BoE’s Woods dismisses calls to weaken Solvency II reform
Deputy governor admits matching adjustment remains a “point of contention” with industry
CPMI creates framework for linking payments
Linking and use of APIs could cut need for long chains of correspondent banks, report says
Europe’s banks must change climate risk approach, ECB says
ECB’s first climate change stress test finds 60% of lenders lack stress-testing frameworks
BoJ to study impact of CBDC on bank deposits
Report says safeguards needed to prevent possible “rapid shift” from bank deposits to CBDC
Big tech links are ‘policy blind spot’, says FSI
Basel-based institute says tech firms are “increasingly intertwined” with financial sector
FSB cross-border payments work hampered by data problems
Measuring progress “will not be straightforward”, working group says
BoE flags global risks in ‘opaque’ commodities market
LME disruption reveals “highly leveraged” participants within financial system
ECB introduces green asset policy
Moves aim to “gradually decarbonise” Eurosystem’s bond holdings, ECB says
Basel Committee proposes capital add-ons for crypto exposures
Committee tightens proposed rules in several areas following high-profile crypto failures
China and Hong Kong to launch derivatives trading link
HKMA chief says Swap Connect scheme will allow global investors to manage interest rate risks from bond investments on the mainland
Danish central bank sceptical on retail CBDC
Report says existing payment systems offer similar benefits, but case for CBDC could change
G30 warns US Treasury market remains vulnerable
Group says US regulators need to do more to prevent dysfunction in the critical market
Libyan central banks have open dispute as political climate worsens
Tripoli-based central bank denies counterpart’s claims of lack of liquidity
Central banks should take on more credit risk during stress – BoE paper
Research claims generous credit terms can be more efficient than cutting the risk-free interest rate
GFXC launches tool to spur buy-side adoption of FX code
Standard-setter aims to overcome “lukewarm” buy-side response with web-based prototype tool
Banking systems’ long-term systemic risk has grown – ECB paper
Assets became safer but banking systems’ failures were more harmful, analysis finds
State Bank of Pakistan appeals to supreme court over interest ban
Sharia court ordered Pakistan to adopt fully Islamic banking system within five years
(Un)stablecoins and central banks
Time to tackle stablecoin structures and support mechanisms
Fed finds major banks able to withstand ‘severe recession’
All banks pass stress test despite tougher scenario than in 2021
Chaos around Lebanese central bank grows
Audit due to recommence but judge says governor cannot be found by police, reports say
RBI deputy sees ‘miles to go’ despite progress on bank reforms
Asset quality of Indian banks has been improving, says Rajeshwar Rao
BIS unveils ‘post-quantum cryptography’ project
Innovation Hub centres will also explore climate disclosures and CBDC security
RBI aims to triple volume of digital payments by 2025
New strategy document aims to build on “phenomenal” growth in electronic payments
Gender equality is key to sustainable development
Bank of Zambia deputy governor Rekha Mhango sets out the central bank’s strategy on financial inclusion