Financial Stability
Funds warm to Esma liquidity rules after Covid crisis
Funds are embracing stress-testing, and swing pricing, after “a real liquidity crisis” in March
IMF warns unprecedented central bank support may fuel instability
Investors may be too optimistic about recovery, IMF report says
Lebanon’s powerful central bank chief and its slide into crisis
Governor Salameh created unsustainable banking sector, former minister alleges in an interview
Fed finalises Volcker rule reform
Amendments permit banks to return to risky activity seen in 2008 financial crisis, Lael Brainard warns
FSB flags ‘gaps’ in too-big-to-fail reforms
Report highlights evidence reforms are working, but resolution remains imperfect and data limited
Fed caps dividends after stress tests show big potential losses
Brainard says decision not enough as tests show loan losses could exceed those during financial crisis
Book notes: Stable banks in challenging times, by Andreas Dombret
Dombret’s stability and rule-based compass should be that for every aspiring central banker, worldwide
Podcast: Boston Fed backs community action on Covid-19 and racial inequality
Working Cities Challenge provides soft infrastructure for better policies and progressive conversations
Kenya’s central bank extends mobile payment exemptions
Crisis measures led to major increase in use of mobile payments systems, central bank says
NGFS unveils climate stress-test scenarios
Group releases guidance document and data to help central banks tailor climate stress scenarios
New European payment effort delayed due to Covid
Consolidation of Target2 and T2S platforms hindered by pandemic
Fed to assess banks’ management during Covid-19
Supervisors evaluating business and operational strategies, cyber security and market risk assessments
ECB warns Slovenia over new loan law
Yves Mersch says ECB should have been consulted over law and warns of financial stability effects
NGFS offers concrete next steps to assess climate vulnerabilities
New climate risk scenarios to be adopted by BoE and Buba
CGFS report offers policy advice for coping with dollar funding strains
BIS committee gives advice amid “major changes” in the structure of global dollar funding markets
FCA to gain new powers to tackle ‘tough legacy’ issues in Libor transition
Untangling complex legacy issues is looking increasingly difficult as delays mount due to Covid-19
Singapore and China to deepen collaboration on green finance
MAS chief proposes working together in areas including loan syndication and verification
Bafin says it did not supervise scandal-hit Wirecard
Official tells Central Banking he is “not aware” of any agency supervising firm implicated in fraud
Covid-19 and oil: a tale of three countries
Oil-dependent nations are facing a crisis on two fronts. Central banks must now strike a balance between keeping inflation in check and restoring growth
German regulator faces questions after Wirecard admits huge possible fraud
Bafin brought criminal complaint against journalists who alleged wrongdoing at German company
BoE admits bond holdings are contributing to climate change
UK central bank’s bond portfolio is out of step with international climate goals
PBoC will not engage in monetary financing, Guo says
Senior central bank official says China will not monetise deficits or use negative interest rates
Syrian central bank devalues currency as new sanctions bite
Black market value of currency reportedly tumbles as civil war continues and new US sanctions begin
RBI to push for bank governance overhaul
“Growing size and complexity” of the banking sector demands stronger governance, paper says