Financial Stability
Expected loss model can cut capital procyclicality – BoE paper
New approach to loan loss provisioning can improve stability of capital and leverage ratios
BIS paper proposes new capital flow management tool
Offsetting capital flows rather than blocking them could be the optimal choice, authors say
ECB estimates trillions of euros at risk from climate change
Central bank publishes sustainable finance, carbon emissions and physical risk indicators
BoE says rush to sell could undermine insurance stability
Supervisor questions whether some firms’ stress-test assumptions are “realistic”
Fed begins climate risk assessments for largest lenders
Six largest US banks must assess exposure to physical and transition risks by July 31
Argentine minister announces debt buyback
Government will repurchase up to $1 billion in foreign currency bonds “to lower risk premium”
Head of Jamaican financial regulator resigns over fraud scandal
McFarlane leaves after alleged fraud at investment bank costs sprinter Usain Bolt millions
‘Funding for lending’ may suffer side effects – BIS committee
Survey finds lending schemes tend to be effective, but firms may become dependent
Some US banks “too big to manage”, OCC head warns
Acting comptroller Michael Hsu says agency may clarify regulation to improve governance
Capital buffers not all working as intended – BoE paper
Some banks raised rates and contracted credit supply during the Covid-19 crisis
FSB finds implementation of non-bank reforms still ‘incomplete’
Banks are well insulated but more progress needed on liquidity management and securities financing
‘Geo-economic fragmentation’ could cut GDP by 12%, says IMF
Georgieva says world faces “new Cold War”, putting global financial stability at risk
China set to ease borrowing limits for ‘high-quality’ developers
New measure is part of a 21-point plan to support the reeling property sector
Sri Lankan IMF deal blocked by debt problems, governor says
Bailout package needs agreement on Chinese and Indian loans, Weerasinghe says
BoE completes unwind of gilt market intervention
“Financial stability portfolio” took a month and a half to wind down, as QT continues
Bank of Thailand to open virtual banking applications
Virtual banks should open in 2025 and come under same regulatory regime as existing lenders
Bank of Russia restarts open FX trading to support ruble
Ruble will trade openly against yuan as Russian dependence on Chinese markets appears to grow
Fed will not fight climate change without mandate, Powell says
Elected officials must take lead in policies to green economy, Fed chair argues
France must mandate regulation of crypto assets, governor says
Government should not wait for EU to pass regulatory measure, Villeroy de Galhau argues
Crackdown on internet firms is ‘basically done’ – PBoC party chief
Guo Shuqing’s comment comes as Ant Group founder Jack Ma cedes control of company
Taiwanese central bank unveils climate change strategy
Central bank aims to promote sustainable finance and incorporate climate factors in forecasting
BIS finds Brexit dented London’s financial ‘pre-eminence’
London remains a leader in banking and derivatives, but has lost some market share
Fed warns banks on crypto exposures
Regulators cite “lack of maturity and robustness” in crypto firms’ risk management
Rethinking the CCyB
As central banks rush to replenish bank capital reserves, the countercyclical buffer may need some fine-tuning