Financial Stability
Climate risk models not up to scratch, warns BIS report
New research highlights models’ inability to accurately anticipate climate risk; says central banks must not become “climate rescuers of last resort”
UK government names Carney as green finance adviser
Departing BoE governor will advise UK prime minister at UN climate conference in November
Bank of Spain unveils first strategic plan
Hernández de Cos’s priorities include better macro-prudential policies and increased trust
UK regulators set new deadlines for Libor transition
Working group sets out priorities for 2020 as Libor deadline looms
Cyber security suffers from inconsistent approaches, says IMF’s Lipton
Emerging markets struggle to implement international recommendations, expert adds
European banks must improve ‘big data’ practice – EBA report
Current regulatory framework is adequate but banks must work hard to improve trust, EBA says
Brainard lending proposal gets boost in Congressional hearing
Participants applaud Fed proposal, while strongly criticising plan by OCC’s Otting
Violence in Myanmar could hamper growth – World Bank
Investor confidence is being damaged by sustained conflict, despite robust growth
Bank of Spain paper looks at EM vulnerability
“Sherloc” tool seeks clues for emerging market fragility in wide range of variables
ECB largely welcomes move to expand German macro-pru powers
ECB says measures giving BaFin greater powers are “appropriate”, but need better data
Trump threatens to cut off Iraq from New York Fed account
Central Bank of Iraq risks losing access to New York Fed account if government ousts US soldiers
Lebanese governor requests more powers to deal with crisis
Salameh says financial and monetary stability at risk without new measures to regulate banks
Slovenian central bank demands courts rule on bail-in law
Bank of Slovenia says law would break EU Treaty as bitter dispute over bail-ins escalates
Economists call for action on risk of dollar liquidity crunch
Credit to non-banks and currency mismatches have grown, while oversight is “fragmented”, report warns
Ageing populations will keep interest rates low – BdF paper
Housing availability can attenuate decline in rates, authors find
EU central bankers urge UK to stay close on regulation
Klaas Knot and Luis de Guindos warn UK could lose out if it diverges from EU regulations, but Mark Carney says UK needs autonomy
NPLs and cyber risks threaten Eastern Caribbean MU – IMF
Steps towards banking union should be put on hold until short-term priorities are addressed, says fund
Female Spanish entrepreneurs face unconscious bias by lenders – research
Double standards suggest credit allocation among start-ups is not efficient
BoE prepares for regulatory data shake-up
Central bank keeping open mind on future of regulatory data collection; FCA plans to expand “advanced analytics” and automation
Bank Negara Malaysia seeks feedback on new climate taxonomy
Central bank proposes classifying activities based on how much they harm the environment and how willing businesses are to improve
BIS paper: banks may harm customers through ‘steering’
Nudging “naive” households to take decisions can harm their welfare, authors find
Pension funds suffer in latest round of Eiopa stress-testing
Only 30% of funds have policies in place to mitigate ESG risk; low interest rates continue to pose a problem for funds across Europe