Financial Stability
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
Riksbank develops model to stress-test banks’ corporate lending
New model is based on microdata on all Swedish non-financial corporations
Non-banks in focus as G20 leaders meet in Bali
FSB calls for action on liquidity mismatches and “hidden leverage”
Chinese regulators throw lifeline to struggling developers
Hong Kong-listed mainland property stocks surge as banks told to offer loan extensions
BoE paper finds U-shaped collateral impact from central clearing
Centrally clearing all derivatives trades does not necessarily free up the most collateral
PBoC increases aid for troubled real estate sector
Latest measure expands bond scheme to $34.5 billion and offers developers help with debt issuance
Riksbank calls for housing and tax reforms to reduce financial risks
Financial system faces risks from highly indebted households and real estate firms, report says
Fed’s stability report warns over global tightening and stablecoins
Stablecoins face possible runs while strong dollar poses EM risks, Fed says
Vietnam’s central bank tells banks to lend to fuel companies
Mounting crisis sees petrol stations running out of fuel as oil and gasoline firms struggle to secure loans
Vietnamese governor tries to calm fears over banks
Nguyen Thi Hong says banks face liquidity bottlenecks and falling currency is causing pressure
Book notes: Yellen, by Jon Hilsenrath
Offers new insights into the tough decisions Yellen has made as a pre-eminent economic policy-maker
ECB sets 2024 climate change deadline for big eurozone banks
Most ECB-supervised banks failing to implement climate change plans, Elderson says