Financial Stability
IMF executive board backs $650 billion SDR allocation
Allocation is set to be largest in the fund’s history, with launch expected in August
Israel delays launch of sovereign wealth fund
Revenue from natural gas and mining has not yet reached target, tax authority says
Stress tests may be poor guide to capital levels – BIS paper
Authors develop model of how “noisy” tests may cause problems for regulators
PBoC continues crypto trading crackdown
Chinese deputy governor says PBoC will widen tests of ‘digital yuan’ CBDC prototype
FSB maps path for climate reforms
Global body is playing a co-ordinating role given interconnected risks
Basel III helped absorb impact of Covid-19, says BCBS
Early study of pandemic finds better-capitalised banks lent more to households and businesses
DRC’s president appoints IMF official as first female governor
IMF deal says government must stop using central bank's reserves and strengthen independence
FCA warns against use of ‘credit-sensitive’ rates in place of Libor
Banks should tell the FCA if they plan to use such rates and consider the risks “carefully”
Turkish central bank has fired large number of staff, report says
Journalist says “political appointees” are joining bank in unprecedented numbers
ESRB calls for reform of MMF regulation
Body stresses Covid-19 exposed systemic vulnerabilities stemming from money market funds
Three ways to bolster flawed AML/CFT in the EU
The EU needs to significantly improve the structure and resourcing of its AML/CFT oversight if it really wants to combat illicit money flows, write Panicos Demetriades and Radosveta Vassileva
ECB’s Enria warns eurozone banks over risk-taking
ECB likely to lift recommended dividend pause in September, chief supervisor says
RBI scales back predictions of rise in stressed assets
Indian central bank says policy support has helped curb rise in non-performing assets
FSB proposes menu of policies to tackle money market fund risks
Proposal aims for tailored approach to boosting resilience of key funding markets
The RBI’s next big question: how to normalise monetary policy?
India’s central bank needs to plan an exit from its efforts to manage the ‘impossible trinity’
BoE demands changes at Euroclear after system outage
Central bank takes supervisory action over outage that caused “notable” market disruption
ECB launches consultation on supervisory practices
Central bank says exercise aims to boost transparency on its interaction with banks
ECB paper investigates macro-pru’s impact on inequality
More research is needed on how borrower-based measures affect income inequality, researchers say
BIS’s Luiz Pereira on tackling the climate crisis
Deputy general manager highlights the challenge posed by radical uncertainty, the benefits of carbon budgeting, and the case for acting now
ECB takes over supervision of largest EU investment firms
Firms posing systemic risk should not try to circumvent new regime by changing structure, ECB says
Rising spillover risks from macro-prudential policies
Tools used to restrict credit in specific sectors can increase the riskiness of credit in other areas, creating challenges in the use of household-specific and corporate credit-calming measures, write Lucyna Górnicka and Apoorv Bhargava
PBoC tightens ban on crypto transactions
PBoC warns largest banks to verify customers’ identities and stop aiding bitcoin-related transactions
Large global banks sign up to new Swift platform
Payments consortium says new system will facilitate seamless transactions