Macro-prudential
Capital buffers not all working as intended – BoE paper
Some banks raised rates and contracted credit supply during the Covid-19 crisis
Rethinking the CCyB
As central banks rush to replenish bank capital reserves, the countercyclical buffer may need some fine-tuning
BoE to stress-test non-bank sector for first time
“Exploratory” exercise will test market liquidity as officials call for “urgent” action on non-banks
Proportionality in bank regulation: striking the right balance
Careful analysis is required when making any proportionality adjustments in the EU single rule book
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
Some CCPs struggle in BoE stress test
First CCP stress test finds firms come close to depleting their buffers in baseline scenario
BoE’s planned procyclical capital hike bewilders banks
Some doubt regulator will go through with buffer hike while forecasting recession
Fintech needs better oversight as risks grow, FSI says
Basel-based group sees room for system-level testing and closer scrutiny of tech firms
Corporate debt is a growing threat to financial stability
Policy-makers need to take action as tighter financial conditions risk tipping firms into distress
Rethinking regulation of the modern financial system
Rules need to address uncertainty in addition to risks, and should not be too complex
RBI deputy sees ‘miles to go’ despite progress on bank reforms
Asset quality of Indian banks has been improving, says Rajeshwar Rao
Tackling private-sector debt in the wake of the pandemic
Navigating Covid-19 debt is more of a challenge amid gathered storms of inflation and war, write Roong Mallikamas and Benjamin Weigert
BoE paper models macro-prudential spillovers
Agent-based model sheds light on how housing market policies affect different groups, authors say
The international effort to manage NBFI risks: where do we stand?
Maurizio Trapanese details progress made during the Italian G20 presidency as well as outstanding macro-pru issues
PBoC resumes profit transfer to government
Transfer of $158 billion follows two-year suspension during Covid-19 pandemic
Reciprocity can curb macro-prudential ‘leakages’ – BIS paper
But gains can be small, which may explain limited use of reciprocity to date, authors say
BoE consults on removing macro-prudential rule
Affordability test has drawbacks and may no longer be needed, given other tools, says FPC
Banks still falling short of final Basel III requirements
Basel Committee says some metrics seem to have been impacted by Covid-19
RBI flags ‘emerging signs of stress’ in small firms
Stress tests indicate rise in Indian non-performing assets likely in coming months
BoE tightens countercyclical buffer as risks stabilise
Banks expected to meet higher rate without cutting lending, even as capital ratios dip
RBNZ’s Bascand: ‘bias towards prudence is probably a good thing’
But next 10 years likely to see greater focus on efficient regulation, outgoing deputy governor says
BIS calls for systemic approach to non-banks
“It is essential to reduce the need for emergency central bank support,” says report
BoE paper links inequality to credit crises
Central banks will redistribute resources whether they act or not, authors say
RBNZ prepares curbs on debt service
Central bank is concerned by “very high debt” and “unsustainable house prices”