Financial Stability
Taxing unrealised gains could support financial stability – study
BoE paper finds conventional capital gains tax cuts historically increased asset price volatility
Europe’s stability at risk if AI bubble bursts – ECB blog
Correction could freeze functioning of continent’s financial markets, say central bank economists
UK has a new prime minister, but the same fiscal woes
Debt, spending and bond markets present challenges for Burnham and BoE, say former MPC members
Libyan governor sets out conditions for withdrawing resignation
Issa reportedly wants faster implementation of budget, trade reforms and halt to wage rises
Brazil’s central bank shuts down two lenders
Move comes amid broader clean-up of country’s weakest financial institutions
SNB welcomes ‘too big to fail’ reforms
Switzerland moves to close Credit Suisse-era gaps with new banking regulations
Argentina eases bank dollar lending to companies
Authorities roll back post-2001 guardrails in effort to boost credit and economic growth
CFTC uses emergency powers to overturn prediction market ban
Temporary US-wide ban would make financial instruments “waste away”, chairman says
Study compares private credit and leveraged loan market structure
Some firms better able to substitute between funding types than others, authors find
Resolution reforms may cut credit supply – CEPR paper
Easier requirements on smaller US banks helps reveal impact of ‘living wills’
Working group minutes: macro-pru calibration challenges
Many central banks are struggling to get enough data, particularly on borrowers
Thai economy needs monetary, fiscal, financial policy mix – BoT
‘Single policy tool insufficient to mitigate more frequent shocks,’ central bank says
Eurozone banks get reality check after ECB geopolitical stress test
Financial institutions struggling to embed geopolitical risks into resilience testing, ECB says
Central banks should intervene with a ‘market backstop’ – paper
New research suggests optimal policy response to market freezes
Basis trade loses its bite as banks move in
Returns on popular hedge fund strategy dwindle to as little as three basis points, while dealers make use of softened capital rules to replicate the trade
BoE’s crisis lending plan hits buffers
Scepticism greets regulator’s proposal to increase releasable leverage capital buffers
LLMs can analyse news articles to spot stability risks – ECB study
Authors use AI to find trigger events in dataset of over 1 million stories
Supervision Benchmarks 2026 – model banks analysis
Additional data breakdowns shed light on differences between advanced and emerging economies
Nino Jeladze on overseeing Georgia’s fintech hub ambitions
National Bank of Georgia’s vice-governor speaks about efforts to develop stablecoin and fintech rules that encourage innovation while safeguarding monetary transmission and financial stability
Supervision Benchmarks 2026 – executive summary
Benchmarking data reveals how supervisors are adopting AI and upgrading data processing
Implications of the 2026 Middle East war
Gavin Bingham, Paul Fisher and Andrew Large detail the monetary policy, financial stability and international co-operation challenges for central banks