Financial Stability
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
Non-bank growth pushes global financial assets to new peak
Riskiest forms of shadow banking are growing faster than other areas of finance, FSB data shows
Capturing moral hazard: the Scarlet Pimpernel of finance
Moral hazard exists in many contexts, but can be ‘damned elusive’ to capture, writes Jesper Berg
Governors approve plan to regulate banks’ crypto exposures
Basel standards place heavy risk weighting on unbacked crypto assets in bid to limit banks’ exposures
Philippines governor withdraws opposition to SWF
Parliament passes president’s project after changes, despite warnings over corruption
PBoC increases liquidity support as slowdown increases
Retail sales and property prices fell further in November while investment and production slowed
Georgieva says China talks ‘fruitful’ despite limited progress
Restructuring problems are key focus for IMF and World Bank after debt levels hit new high
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