Financial Stability
IMF praises Somali reforms and says debt relief is possible
New agreement between IMF and Somali authorities prioritises central bank development
PBoC extends market closure as coronavirus spreads rapidly
Chinese central bank extends interbank markets closure and vows to maintain ample liquidity
Risky markets had a ‘spectacular’ 2019, IMF officials warn
Largest combined number of rate cuts since 2008 drove financial vulnerabilities, senior officials say
ECB reveals large banks’ individual capital requirements
Enria warns banks to improve profitability, saying “challenging environment” will not change soon
RBNZ supports plan for ‘fallback’ benchmark rate
New Zealand’s benchmark rate-setting body selects the central bank’s policy rate as fallback option
Kuwait’s central bank should relax rate caps – IMF
New legislation will encourage nationwide credit rating system, fund staff say
US mutual funds' liquidity risk on the rise – Boston Fed paper
Ratio of illiquid assets to net assets increased from 2009 to 2019, researchers find
‘Market clustering’ can destabilise equity prices – DNB paper
Researchers present new measure to examine impact of trading overlap on equities
DNB stresses risks stemming from financially fragile households
Central bank study shows more than 14% of Dutch population could not raise €2,000 in an emergency
Better IT protected banks during financial crisis – IMF paper
NPLs were 10% lower in banks with stronger IT infrastructure, research shows
Bad banks work, but not in isolation – BIS paper
Researchers study what factors lead to successful “asset segregation” schemes
ETFs are exposing EMEs to global capital flows – Fed paper
Sensitivity of ETF flows to global financial conditions is 2.5 times higher than mutual fund flows, researchers find
EU council may cut margin haircuts for CCP resolution
Proposals would close avenues for regulators to dip into non-defaulting members’ initial margin
BoE says no-deal Brexit now unlikely
Bank of England ends additional liquidity supervision after passage of withdrawal agreement
Sovereign debt needs strong collective action clauses – ECB paper
CACs with bond-by-bond voting fail to prevent creditor holdouts, researchers find
Bank of Italy and regulator agree joint cyber security strategy
New approach will aim at guarding specific types of financial market infrastructure
Carney defends financial sector’s record on climate action
Finance ready to flow to green projects if politicians take lead, BoE governor says, but other speakers on WEF panel argue firms are not doing enough
Cyber attack could freeze liquidity in US financial system – NY Fed paper
Attack on one bank could affect more than a third of banking system’s assets, researchers warn
Central banks must take lead on climate disclosures – PBoC’s Ma
Reserve managers’ stances send important signals to the financial community, says Ma Jun
Fiji’s central bank faces climate change challenge
Governor notes disaster risk management is evolving at rapid pace
Brookings paper examines impact of governance structures on use of CCyBs
Countries with strong governance mechanisms are more likely to use the macro-prudential tool, researchers find
ECB calls for changes to German draft CCP recovery law
Law should be rewritten to provide more transparency on Bafin’s procedures and approach, ECB says
Non-bank growth slowed in 2018, says FSB
Riskiest forms of non-banks still growing, but overall assets went into reverse in 2018