Central Banks
Next financial crisis “will be brewing” in shadow banking – Bullard
Silicon Valley disruption represents threat to financial stability; Fed has limited powers to counter it despite FSOC and tough new bank rules, says Eighth District president
Foreign monetary policy affects French and Italian lending – researchers
US policy especially significant, Banque de France paper finds
Policies must change to stop emerging markets crisis, analysts say
Tariffs, Fed policy and renminbi devaluation are stressing weaker currencies, say observers
Ukrainian central bank will order weak banks to boost capital
NBU says it will order recapitalisation and restructuring based on assessment results
Banks ask Fed to delay CECL impact on stress testing
Fed asked not to implement CECL into CCAR until 2021
HKMA spends over $2 billion to defend local currency
Hong Kong dollar fell to hit lower limit of its 7.75-7.85 peg to US dollar
Tariffs will reduce US exports – New York Fed
Higher producing costs likely to reduce competitiveness of local production, article says
Capital markets union a la Willie Sutton
When Sutton was asked why he robbed banks, he said: “That’s where the money is.” Europe has yet to address where the capital markets union funding should come from, but there is a solution
Denmark’s exchange rate stable despite greater FDI inflows
Large international investments absorbed by krone market, central bank says
Israeli PM considers former Argentine head as possible governor
Mario Blejer met with Israeli prime minister and finance minister, local newspaper reports
Indonesian central bank hikes rates as global volatility hits rupiah
Forex interventions cut reserves by 11% between January and July 2018
Turkish central bank raises overnight rates in bid to stop lira’s fall
Move comes despite president Erdoğan’s hostility to rate hikes; banking authority also acts
Cameroon faces risks from microfinance links to banks – IMF staff
Rise of mobile banking is making microfinance sector more vulnerable, report says
Tariffs unlikely to have lasting impact on US economy – Bullard
Disruption of global supply chain could be biggest risk of trade dispute to date, says St Louis Fed president
Negative policy rates increases risk-taking by high-deposit banks - ECB paper
Eurozone banks with high deposit levels have changed lending patterns since 2014, say researchers
Trade data can detect illegal financial flows, Bank of Italy paper says
Authorities largely ignore “trade-based money laundering”, authors argue
James Bullard on 2% rates, tariffs and Fed leadership
The president of the Federal Reserve Bank of St Louis speaks about the impact of US trade policies, the disruption to the banking industry from Silicon Valley, shrinking the Fed balance sheet and the potential for agent-based modelling
Spanish banks strongly influenced by knowledge of firms, paper finds
Banks’ understanding of clients helped smooth credit contraction during financial crisis – researchers
Uganda keeps rates on hold despite rising core inflation
Policy necessary to ensure “sustainable growth”, governor says