Financial Stability
RBNZ extends some emergency measures
New Zealand central bank delays capital changes again and may reinstate LTV limits
A 19th century bank failure holds lessons for stablecoin era – BIS paper
Bank of Amsterdam’s early “stablecoin” fell apart as the bank lent more freely, authors say
BoE warns banks: start preparing for a higher carbon price
Risk Live: stress tests should assume rising carbon price, regardless of government policy, says Breeden
Weak banks could reverse effects of policy rate cuts – ECB paper
Countercyclical buffers play crucial role in preventing “reversal interest rate” events, researchers find
EBA wants Basel to revisit prudential rules on software
Banking regulator set to soften capital impact of IT assets, but proposals are still out of line with US
Baltic central banks aim for joint commercial paper market
Estonian, Latvian and Lithuanian central banks to work with EBRD on creating short-term debt market
Fed examines climate risks in stability report for first time
It is “vitally important” that climate risks are “assessed and addressed”, says Lael Brainard
BIS paper pins down causal impact of capital flows
Study based on confidential BIS data finds capital controls can help prevent overheating
China mandates deposit insurance labels
PBoC goes further in implementing deposit insurance policies to mitigate risk
RBI adapting to ‘increasingly complex web’ of non-banks
Deputy governor highlights “significant change” to RBI’s regulatory approach
BoE will not use climate stress tests to set capital buffers – Bailey
Andrew Bailey reveals new details of tests, with launch set for summer of 2021
MAS secures more financial crime convictions
Nine individuals convicted as a result of MAS investigations over 18-month period
ECB paper looks at interest rate-growth differential
Several factors are likely to push differential up for some eurozone countries, say researchers
World’s biggest IPO suspended after PBoC intervenes
Ant Group market debut suspended after Chinese authorities interview Jack Ma
Tunisian central bank forces state to cut spending plans
Prime minister abandons plan to widen deficit to 14% of GDP after governor refuses to finance it
Dollar funding drives global house price movements – BIS paper
Non-US banks often depend heavily on dollar funding to issue mortgages, authors show
Egyptian central bank fires head of largest commercial lender
Governor holds emergency meeting with lender’s board but nature of problems is unclear
Paper offers method for evaluating machine learning models
Bank of Spain paper looks at cost and benefits of ML models for predicting credit defaults
Bundesbank paper looks at consequences of weak supervision
Supervisors seen as less likely to intervene give banks incentive to stay undercapitalised - researchers
Firms still making too few climate disclosures, task force says
TFCD report highlights rapid rise in firms backing disclosure, but says fewer are taking action
Eurozone credit tightened in Q3
Worsening economic outlook boosts borrowers’ credit risk, says the ECB
Business failures will impact bank balance sheets – RBA’s Bullock
Central bank forecasts volume of business failures to rise with the removal of support
Regulators fine Goldman $2.9 billion over 1MDB
DoJ says bribes were largest it had discovered, as UK regulators fine US bank $126 million