Financial Stability
AI could amplify financial stability risks – BIS’s Zhang
Technology may increase speed and intensity of how stress propagates through system, says official
Geopolitics a key focus for ECB supervisors – blog
European banks have fared well so far against shocks but must stay vigilant, senior officials write
Fed study sounds alarm over algorithmic rises in credit limits
Researchers say US lenders are extending too much credit to subprime borrowers
Legal threat to Fed accelerates Asean+3 contingency planning
AMRO chief economist says central bank independence of paramount importance for stability
Bailey underscores support for Powell
BoE governor also points to potential spillover risks to UK from events in US
Tech-driven global growth vulnerable to shocks, IMF warns
Sharp market corrections could ensue if productivity gains from AI do not meet expectations
BoE to ‘streamline’ supervision as part of growth push
PRA has been easing some regulations as government looks to cut cost of compliance
BoE’s Ramsden defends UK’s ring-fencing regime
Deputy governor says rules remain “critical” to regulatory framework amid review to reform them
Sticky fears about sticky inflation
Survey finds investors are not yet ready to declare victory on inflation – with good reason
New England is pocket of recession risk in US – Fed study
Researchers say overall threat of national downturn is low, but requires monitoring nevertheless
Philippines extends incentives for sustainable lending
BSP says banks can have up to 40% credit exposure for green projects for another two years
State Bank of Vietnam lowers credit growth target
Central bank says lenders should ‘strictly control’ loans to risky sectors
Private credit to play bigger role in AI boom – BIS study
Hidden leverage may dispel notion that sector poses only moderate stability risks, authors say
‘Green’ banks face lower repo rates – ECB study
Researchers say climate transition risk has implications for financial stability and policy transmission
Yellen warns of fiscal dominance at the Fed
Former chair joins economists in sounding alarm over central bank’s response in event of debt crisis
Jordan plans ‘quantum-resistant’ transition roadmap for banks
Central bank calls for co-ordination over encryption measures to ensure business continuity
BoT details efforts to curb gold-related FX volatility
Financial institutions given new timeframe to verify gold transactions, with further measures planned
New capital requirements will reduce borrowing costs – RBNZ
Lenders to hold substantially less than under previous recommendations
BoT proposes agency to oversee gold trade amid baht appreciation
Economist says greater oversight would slow dollar-baht trade, but underlying issues may persist
Richard Doornbosch on central banking in a tempestuous climate
The president of the Central Bank of Curaçao and Sint Maarten speaks to Christopher Jeffery about addressing legacy financial scandals, transition to a Caribbean guilder, tapping gold holdings and managing a currency peg at a time of US policy uncertainty
ECB looks to simplify bank regs, supervision and reporting
Recommendations include merged buffers, lesser reporting burdens and an easier life for smaller banks