Financial Stability
Fed to flood repo market with up to $5.5 trillion
NY Fed unveils substantial liquidity package as analysts warn massive market disruption is possible
ECB lowers capital levels as EBA postpones stress tests
Coronavirus response sees ECB loosen limits for largest banks while EBA calls for supervisory flexibility
Cannabis industry causing problems for Caribbean finance - ECCB
Industry could lead to further de-risking efforts from foreign banks, central bank warns
Bank of Spain paper looks at macro-pru and growth at risk
Financial cycle, time elapsed and type of measure has major impact on effectiveness – researcher
PBoC takes on regulation of key financial infrastructure
Chinese central bank to take bigger role in regulation as country seeks to improve financial infrastructure
Coronavirus policy responses raise financial stability threat – IMF official
Policy-makers must be alert to threat of rapid liquidation of risky assets, Tobias Adrian says
Russian central bank responds to virus and oil shocks
Bank of Russia announces liquidity boost and new risk weighting for companies hit by coronavirus
Financial crises harm innovation – BIS paper
Loss of access to bank credit can harm research spending for more than 10 years, study finds
FCA consults on new climate risk disclosures
Firms will have to publish disclosures or explain why not; critics believe the new rules should be mandatory
RBI prepares rescue plan for failed bank
State Bank of India agrees to help rescue Yes Bank, which remains under “moratorium”
Carney sets out ‘grand unifying theory’ of macro-pru
Loss function for financial stability echoes format of Taylor rule, but requires much more judgement; speech is Carney’s last as BoE governor
Senior Moldovan central bank officials arrested
Central bank expresses “deep concern” over arrests and calls for “impartial” probe into 2014 fraud
OECD supports swap line use in Covid-19 response
Adequate liquidity must be provided to prevent bankruptcy should cashflow issues arise – report
IMF makes $50 billion available to fight coronavirus
Kristalina Georgieva calls on IMF members to “fully recharge” catastrophe fund
Fed unveils new capital regime to criticism from Brainard
Federal Reserve says new rules will maintain capital levels, but senior official calls them “imprudent”
UK regulators checking firms’ virus contingency plans
Firms can use alternative sites or let staff work from home so long as regulatory obligations are met
Tough inspections help cut zombie lending, paper finds
Checking banks’ assessments of asset quality cut loans to non-viable firms – Bank of Portugal paper
How could the coronavirus affect the world economy?
Central banks may lack firepower, while public health readiness differs sharply between countries
ECB mulls wider clearing house access to account facilities
Including CCPs in the Eurosystem may remove the need for them to seek a banking licence
BIS research finds 20% drop in active correspondent banks
Retreat from correspondent banking could drive people into “unregulated channels”, authors warn
Chinese banks probably concealing NPLs – Finnish paper
“Hidden NPLs” particularly common in large and well-capitalised banks, researcher argues
Canadian mortgage tweaks may add to housing imbalances – economists
Government’s policy change likely to lower qualifying hurdle for mortgages in the near term
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
Book notes: After the crash, by Sharyn O’Halloran and Thomas Groll
The book seeks to identify seeds of the next crisis, and the overriding impression is a plea for more regulation