Financial Stability
Major banks pass Fed stress tests
All banks assessed reached minimum capital requirements in more adverse scenario
Richmond Fed economists design bank resolvability score
Score could help make complex living wills easier to interpret, authors argue
Issuing “foreign-law” debt can cut costs in times of crisis – ECB paper
Eurozone countries’ bonds issued abroad showed major premiums during debt crisis, researchers say
Caribbean central banks look for common approach to fintech
Working group set up to look at crypto assets in the region
Leverage ratio disincentives clearing – BoE paper
Leverage ratio appears to have made some banks less willing to take on new clients
‘Living wills’ have reduced implicit subsidy – Fed paper
Higher cost of capital implies resolution measures have reduced ‘too big to fail’ subsidy, authors say
Fed paper questions value of debt as crisis indicator
Asset prices and current account balance more important, author finds
Argentina launches new measures to stem peso depreciation
Analysts concerned new central bank tools to control peso are not enough
UK lawmakers ‘satisfied’ with Visa response to outage
Visa has promised independent inquiry into incident that saw 5.2 million payments fail
Central bank digital currency of no benefit to financial stability – RBNZ research
CBDC could make New Zealand’s banking sector more susceptible to spillovers
UK card transactions surpass cash for first time
Report shows card transaction volume was marginally higher than cash in 2017
Experts warn Mexico’s peso defence could be costly
Risks on the horizon prompt concerns around the Bank of Mexico’s approach to forex volatility
BIS calls for ‘redrawing of regulatory boundaries’ around crypto
Regulation will have to adapt to a “new reality”, BIS says
Italy’s trial
Francesco Papadia argues Italy will suffer economic damage under its new leaders, but will still not leave the euro
Bundesbank forecasts German growth will continue
Fiscal expansion will support aggregate demand in coming year, says Bundesbank
Fed acts to limit largest banks’ mutual exposures
Largest banks in the US face limits on their exposures, but smaller banks are exempt for now
Trump’s fiscal policy threatens emerging markets – Lagarde
Looser fiscal policy could increase market volatility and worsen global imbalances – IMF chief
Bank of Thailand allows securities firms to provide forex trading services
Central bank says rule change will improve market flexibility