Financial Stability
DNB paper examines global data on ‘prop trading’
Proprietary trading in securities is linked to decreased loan supply, researchers say
US Democrats listen to Norges Bank deputy governor on climate change
Egil Matsen tells US Democratic senators that central banks must play major role in greening finance
Croatian governor warns ECB spillovers are raising real estate prices
IMF should advise less separation between macro-prudential and monetary tools, Boris Vujčić says
HKMA cuts banks’ counter-cyclical buffers
Hong Kong’s central bank meets with lenders to increase SME funding as protests escalate
NGFS publishes first green investment handbook for central banks
Handbook examines five strategies for green investment and identifies problems for central banks
De Cos maps out ‘future path’ for Basel Committee
New chair says four key principles will guide the committee’s approach
Africa faces debt crisis, Banque de France governor warns
G20 nations must act fast to tackle rising African debt, François Villeroy de Galhau tells IMF meeting
Slovenia’s central bank warns lawmakers over bail-in
Central bank says draft law would hand it unlimited liability for bondholder losses
PBoC says its bills are better tools than bonds for China
Central bank bills will play bigger role in stabilising yuan exchange rates, suggests PBoC note
IMF: loose monetary policy is fostering greater risk-taking
A crisis half as strong as in 2008 could send “corporate debt at risk” to $19 trillion, says the fund
Chilean central bank deputy calls for co-operation on climate change
Data collection on physical and energy transition risks and their economic impact is a priority
DNB paper looks at how regulation affects systemic risk
Restrictions on entry increased systemic risk before financial crisis, researchers say
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
FSB raises pressure on stablecoins as firms abandon libra
Several major payment firms have distanced themselves from the project
Global banks vulnerable to dollar funding shocks, IMF stability report shows
There has been a “resurgence” of US dollar liabilities relative to assets in non-US banks, IMF warns
Falls in uncertainty may warn of coming crises – Bundesbank paper
Researchers attempt to quantify relationship between rising confidence and early signs of crisis
Draghi defends ECB policy
ECB president welcomes debate but insists crisis-fighting policies saved eurozone
Brainard attacks Fed plan to soften regulations
Governor warns regulatory cutbacks risk weakening “core safeguards” put in place post-2008
Italian firms may rely too much on bank credit – research
Bank of Italy paper brings together different data sources to examine firms’ sources of capital
World risks ‘global liquidity crunch’, former BIS officials warn
“Urgent action” needed to prevent crisis, say Philip Turner and André Icard
RBA paper looks at responses to liquidity crises
Penalty rates to contain risk-taking are more effective on long-term loans, study finds
BoE FPC: Markets may ‘jump to illiquidity’ if stressed
Debt and “structural illiquidity” could amplify global shocks, warns committee
Philippines mulls won-peso bilateral trading
Move aimed at shifting trades away from US dollar
Big tech: a threat to banks?
The explosive growth of big tech companies in China offers important lessons