Macro-prudential
MAS urges vigilance amid rising risks
MAS flags leverage risk in businesses tied to trade and property, as risks to global financial stability rise
China should bolster macro-pru framework – IMF paper
Lack of accurate credit information weakens macro-prudential measures, researchers say
‘Sectoral’ counter-cyclical buffer could boost resilience, says Basel Committee
Targeted tool would have a narrower impact on segments of the market
Debelle analyses impact of mortgage arrears
Mortgage arrears are at historical low, Australian deputy says
Hidden money creation is impacting policy, PBoC economist warns
“Banks’ shadow” hampers monetary and financial stability policy, Guofeng Sun says
Both short and long-term banking liquidity ratios needed – ECB paper
Net stable funding ratio has not been introduced in all jurisdictions, researchers say
ECB paper sets out stress tests for investment funds
Depletion in assets under management could reach 24% for equity funds and 5% for bond funds
Stronger micro-prudential oversight needed on climate change – Mexican deputy
Financial firms should incorporate environmental scenario analysis into their decision-making process
Loan-to-value analysis may be incomplete as macro-pru tool – research
Loan to purchase price, and loan service to income may be more robust analytical alternatives
BoE FPC: Markets may ‘jump to illiquidity’ if stressed
Debt and “structural illiquidity” could amplify global shocks, warns committee
Protracted low rates demand solid macro-prudential frameworks – Claudia Buch
Bundesbank vice-president says nature of monetary union demands strict surveillance
BoE paper measures ‘market-implied’ systemic risk
“Shadow capital adequacy” shows how default risk impacts capital assessments
Law could help central banks fight the next recession
Brookings panel discusses using countercyclical regulations to boost spending at the ZLB
Macro-pru is no panacea
Many central banks need better macro-pru frameworks
BIS paper tracks new channel for funding ‘dry-ups’
A squeeze in one market can spill over to institutions with no direct exposure, authors find
Fed floats new stress test reforms after industry pressure
Previous proposal drew criticism from major global banks
FDIC could reduce resolution costs by 17% – Bank of Canada paper
Eliminating uncertainty over auction process could reduce multiple bidding, researchers say
Asset bubbles play role in macro-prudential policy – IMF research
Their size may determine optimal tax levels to address credit imbalances
China changes mortgage rates anchor to curb housing risks
Home loan rates may be set higher to avoid real estate bubbles
Interbank rate uncertainty raises cost of credit – ECB paper
“Novel measure” helps authors judge effect of disruptions to interbank markets
Raising CCyBs could have ‘greatly mitigated’ 2008 crisis – St Louis Fed paper
Policy-makers could have avoided a fall in aggregate consumption of 21%, researcher finds
BIS paper proposes network model of global contagion
Authors create a network of CDS linkages to assess contagion risk in the financial system
UAE central bank hails new financial stability remit
Financial stability report notes NPL levels have risen, but banks are also making larger provisions
Bulgaria a case study in effective prudential policy – BIS’s Carstens
Country was early adopter of macro-prudential policy, which helped manage capital flows, Carstens says