Financial Stability
BIS analysis finds ‘huge’ debts hidden in FX derivatives
Economists say banks and non-banks have major exposures hidden off balance sheet
Libyan parliament replaces rebel-held areas’ central bank chief
Move came after relations between civil war-torn country’s central banks worsened
Gilts debacle exposes financial stability risks
Lurking leverage in liability-driven UK pension investments raises important questions for central bankers
Armenia’s Galstyan calls for a new framework to tackle uncertainty and nonlinearities
Favours risk-management approach to policy and less emphasis on baseline forecasts that give false assurances
Singapore’s Temasek fund ‘reviewing’ $275 million FTX loss
Deputy prime minister Wong admits reputational damage but says state does not need to audit fund
Bank of England pushes ahead with ‘Basel 3.1’
Central bank says amendments to Basel III could halt downward drift in risk-weighted capital ratios
BoE not briefed on disastrous ‘mini-budget’, Bailey says
Governor says absence of independent assessment of tax package made it very hard to assess
CPMI and Iosco raise ‘serious’ concern over cyber security flaw
Global bodies say several FMIs have vulnerabilities in their cyber security
Eurozone inflation falls for first time in 17 months, estimates say
Eurostat figures show inflation dropping in most countries, including Germany
BoE begins unwinding gilt market intervention
Use of “reverse enquiry window” designed to limit market impact from £19 billion sales
RBA to review payment system after outage
Central bank apologises for October incident that saw 500,000 payments delayed
China cuts reserve requirement ratio for banks
Change to ratio will release funds for banks to help hard-hit industries, says the PBoC
PBoC pushes big techs to hand over user data, report says
Some tech firms are resisting order to supply information to PBoC-led credit-scoring firms
ECB paper presents new corporate default prediction method
Authors say their “distance to insolvency” measure outperforms other forecasting methods
PBoC eases rules to lure foreign bond investors
New rules include allowing foreign investors to conduct FX trades with more financial institutions
BIS paper finds reserves scarcity even during QE era
Banks still relied heavily on incoming payments to replenish funds, researchers find
FSB calculates G-Sib list with revised methodology
Some global banks change “bucket” under first use of Basel Committee’s revised method
US needs regulatory framework for non-banks, Treasury says
Non-banks’ provision of core banking services causes risks to privacy and stability, says report
Financial Stability 2022 – presentation
Subject specialist Dan Hardie speaks about how central banks are confronting new stability challenges
BoE simulates ‘major operational disruption’ to UK firms
Central bank restarts “Simex” testing of financial sector after pandemic hiatus
Chinese MPC member calls for 5% growth target in 2023
China faces "difficulty" in sustaining strong annual growth from now to 2035, Liu Shijin says
ECB warns array of risks threatens financial system
Luis de Guindos calls on governments to avoid fiscal policies running against tighter monetary policy
Climate change may have serious effects on natural rate – ECB paper
Monetary policy may need more flexibility to deal with climate and green transition, researchers say
Climate analysis likely understates risk, say FSB and NGFS
Study finds scenario analysis struggles to capture more complicated dynamics