Financial Stability
Bank of Italy paper uses agent-based model of housing market
Limits on borrowing are effective but not currently needed for Italian housing sector
Bank of England prepares for first public CCP stress test
Discussion paper sets out eight components of supervisory stress test for key market infrastructure
Bank of Israel calls on banks to improve tech risk monitoring
Central bank urges close examination of projects that imply organisational changes
Shadow banking changes macro-prudential trade-offs – BdF paper
Presence of non-banks increases importance of dynamic capital ratios, researcher argues
FCA proposes expanding climate-risk disclosure rules
Climate disclosure proposals are first “substantive” policy for asset managers since Brexit
Malaysia and Thailand launch real-time cross-border payments
Central banks reach milestone for Asean payment connectivity plan
Charles Goodhart on inflation targets, financial stability and the role of money
The LSE professor says inflation targets should have been 0%, the Fed’s move to AIT is a mistake, independence is under threat from inflation, big balance sheets support liquidity, AI can help supervisors and climate stress tests are unconvincing
ECB extends capital relief for largest Eurozone banks
Continued relief on central bank assets will release additional €70 billion in Tier 1 capital, ECB says
RBA should improve RTGS risk management – internal report
Australian central bank’s payments division says it is concentrating on upgrading cyber resilience
‘Contagious zombies’ menace German economy – Bundesbank paper
ECB’s policies have increased flow of credit to “non-viable firms”, researchers say
RBNZ gains tool to curb house price rises
Government approves debt-to-income limits to address hot housing market
ECB calls for change to proposed Polish central bank law
Proposal on loans to bank guarantee fund would break prohibition on monetary financing, ECB says
NGFS has ‘momentum’, but faces obstacles – Després
Lack of data and frameworks hamper climate mitigation, says Banque de France official
Research urges ECB to consider establishing ‘fossil bank’
Entity would play similar role to ‘bad banks’ established after financial crisis
Central banks will need new tools if low rates persist – Rogoff
Governments must clamp down on crypto assets while central banks develop CBDCs, economist says
Covid-19 caused steep decline in SME turnover – BoE research
Government support stemmed collapse but younger firms suffered
Transparency is essential for financial stability – Georgia’s Gvenetadze
But it is still possible to be “too transparent”, governor warns
PBoC to score largest banks’ green finance efforts
Chinese central bank aims to spur growth in environmental investing
Lithuania cancels firm’s licence over alleged Wirecard money laundering
Fintech business committed “severe infringements” in dealings with collapsed German firm – central bank
Sarb paper questions assumption that government debt is low risk
Banks may need to reduce exposure to sovereign debt instruments as fiscal risk rises
Singapore banks step up their game against internal fraud
Firms respond to MAS warnings about the dangers of remote working spurred by Covid
Policy-makers debate central banks’ role in tackling climate change
Some see central banks as important co-ordinators; others warn they could overreach
BoE outlines climate stress tests
Tests planned as “learning exercise” and will not be used to set capital requirements
Eurozone ‘high-yield’ firms face bond market squeeze – ECB paper
ECB could loosen conditions for buying bonds for firms hit by pandemic, economist says