Financial Stability
BIS paper models credit booms and busts
Authors outline heterogeneous-agent framework that could support macro-prudential policy
Nigerian central bank cuts rates despite rising inflation
Country faces falling output and rising prices as general strike vote increases pressure
Sterling swap traders brace for new Sonia switch deadline
Covid delays force regulators to set new date for interdealer swap market to price off RFR
Fed presses ahead with financial inclusion reforms despite disagreement
OCC has already published a final rule and shows little sign of wanting to follow Fed’s approach
Ukrainian governor defends key banking reform
Shevchenko tells court deposit guarantees must stay independent to safeguard banking reforms
US citizens report better financial health than pre-pandemic
Financial wellbeing boosted by government support and return to work, central bank says
Stress-test results reinforce need for capital review – RBNZ
Under very severe scenario, banks need significant capital injections
Action needed to avert Latin American banking crisis – report
Emergency measures may mask growing solvency problems, institutions warn
Fed presents two severe stress scenarios to test Covid risks
Limits on share buybacks and dividend payouts may be extended as stress tests emphasise risks
Deeper EU capital markets will improve risk sharing - BdF paper
Researchers present new methodology to estimate cross-border financial risk sharing in the EU
EU needs single anti-money laundering body, EBA says
EBA calls for EU to include investment and crypto-asset firms in scope of tougher AML/CFT laws
Bank of Spain paper warns over eurozone’s public debt
Individual eurozone countries likely to be more vulnerable due to recent debt increases, paper says
New Zealand becomes first country to mandate climate risk disclosures
Several governments are working to enshrine TCFD framework in law
Investment fund sector needs stress tests – Bundesbank paper
Researchers say their model finds investment firms can magnify losses from global asset price shock
BIS research maps out links between banks and non-banks
First attempt at global mapping reveals significant scale of interconnections
Estonian governor criticises government’s fiscal stance
Spending was too high before coronavirus, and is making all citizens poorer, argues Madis Müller
Nigerian president tells central bank to change forex policy
Central bank defends industrial subsidies and says border has been closed to prevent smuggling
BIS warns of gap between market valuations and reality
Corporate credit spreads have tightened, despite what the BIS sees as a looming solvency crisis
Flu pandemic of 1918 hit poor economies hardest – ECB paper
Researchers say evidence indicates lower income countries may be worst hit by Covid-19
CFTC report calls for US regulators to take urgent climate action
US should join NGFS, impose carbon price and mandate firms to disclose green risks, report says
BoE’s Stheeman sets out expectations on cyber resilience
Policy-makers will be guided by cyber stress-testing and “impact tolerances”
Central Bank of Brazil launches climate change agenda
Proposals include sustainable liquidity facility and adding climate factors to reserves management
MAS ‘front-loads’ interest rate benchmark reform effort
Central bank says not transitioning to new Sora rate will expose banking sector to increased risk
RBI unveils debt restructuring plan
Aim is to save viable businesses while letting hopeless cases fail