Micro-prudential
Beware of capital: much ado about nothing?
Capital increases can be offset by asset valuation, provision and income recognition forbearance
‘Ostrich approach’ to financial stability is a mistake
Denmark’s top supervisor, Jesper Berg, says scaling back IFRS 9 would be a costly error, despite the economic challenges raised by Covid-19
The dawn of a safer and sounder European banking sector
Implementation of two pillars of banking union has led to significant improvements in the safety and soundness of the European banking system
BoE axes 2020 stress test and gives supervisory guidance
IFRS 9 a challenge for firms given high uncertainty over virus impact
Ghana’s Addison on banking reform, innovation and the future of the eco
The Bank of Ghana governor speaks about the next steps in banking reform and why West Africa may need more time to start using a common currency
Swedish central bank will test DLT-based digital currency prototype
Sveriges Riksbank and Accenture project to use simulated agents to test ‘e-krona’
Stability versus solvency
There is still far too much regulatory forbearance on troubled bank debt. More on-site inspections and genuine writedowns are needed to fix the banking system
Fed could postpone stress buffer beyond CCAR – experts
Delays prompt speculation that the new rules will only be known after the stress-test results in June
BoE paper highlights non-linearities in bank funding and solvency
Results could be important consideration in stress-test design, authors say
Stress test capital buffer ‘on track’ for 2020 testing – Powell
Plans were floated nearly 22 months ago, but Fed yet to offer final rule
Fed to stress-test banks’ leveraged loan exposures
Test features leveraged loan shock; scenario includes biggest-ever rise in unemployment
Stress tests should be ‘two-stage’- Donald Kohn
Results for first test could be used to model second scenario, says senior BoE official
BoE says no-deal Brexit now unlikely
Bank of England ends additional liquidity supervision after passage of withdrawal agreement
Brookings paper examines impact of governance structures on use of CCyBs
Countries with strong governance mechanisms are more likely to use the macro-prudential tool, researchers find
BoE prepares for regulatory data shake-up
Central bank keeping open mind on future of regulatory data collection; FCA plans to expand “advanced analytics” and automation
UK regulators weigh rules for ‘operational resilience’
Under proposals, firms will be expected to demonstrate their preparedness for operational issues
RBNZ sanctions bank over capital calculation errors
Bank of New Zealand appears to have misreported risk weights for several years
Das: RBI toughening its supervisory approach
Central bank is focusing on developing specialist supervisors after financial instability
Palestine’s Shawwa unveils microfinance initiative
Sector is a “central pillar” of Palestine’s financial and social stability, PMA governor says
RBI tells public ‘no need to panic’ as mid-sized bank fails
Central bank seeks to quell fears of a second round of trouble after collapse of PMC Bank
Bank of Israel grants digital bank licence
Israel joins growing list of jurisdictions permitting online-only financial services
RBNZ to boost transparency on regulatory breaches
Central bank presses ahead with plan to report “material breaches” by banks on its website
Aussie regulator signals tougher misconduct stance
Asic warns it will use new powers to punish misconduct in wake of excoriating Royal Commission review
Shared supervision can help avoid ‘capture’ – BoE paper
Dividing tasks across agencies can lead to better outcomes by avoiding “supervisory capture”