Financial Stability
Myanmar central bank formally drops forex trading ‘band’
Central bank follows IMF recommendation and also lowers official exchange rate
Next financial crisis “will be brewing” in shadow banking – Bullard
Silicon Valley disruption represents threat to financial stability; Fed has limited powers to counter it despite FSOC and tough new bank rules, says Eighth District president
Ukrainian central bank will order weak banks to boost capital
NBU says it will order recapitalisation and restructuring based on assessment results
Banks ask Fed to delay CECL impact on stress testing
Fed asked not to implement CECL into CCAR until 2021
Capital markets union a la Willie Sutton
When Sutton was asked why he robbed banks, he said: “That’s where the money is.” Europe has yet to address where the capital markets union funding should come from, but there is a solution
Cameroon faces risks from microfinance links to banks – IMF staff
Rise of mobile banking is making microfinance sector more vulnerable, report says
Trade data can detect illegal financial flows, Bank of Italy paper says
Authorities largely ignore “trade-based money laundering”, authors argue
James Bullard on 2% rates, tariffs and Fed leadership
The president of the Federal Reserve Bank of St Louis speaks about the impact of US trade policies, the disruption to the banking industry from Silicon Valley, shrinking the Fed balance sheet and the potential for agent-based modelling
Central Bank of Cyprus suspends subsidiaries of two Russian banks
CBC says decision was influenced by Russian central bank’s decisions but uncertainty remains
Dealers seek FRTB carve-out for Libor transition
Swaps could be hit with capital add-on as liquidity tails off in Libor
Older population increases financial fraud risks – Atlanta Fed
Most financial exploitation of elderly goes unreported, researcher says
Goldman, Morgan Stanley push for stress test changes
Balance sheets will shrink in a crisis, not grow, trading houses argue
IMF backs RBI’s Patel in call for full oversight powers
Fund urges Indian authorities to grant the central bank full powers over public sector banks
Standard-setters update analysis of CCP network
Basel-based organisations find network has only shifted somewhat in the past year
Eurozone mortgage lending back to pre-crisis levels – ECB
New loans reached 4.5% of GDP in the year to March 2018; average since 2001 is 4.4%
Kenyan banks forced to reveal hidden loan fees
Kenya’s central bank begins effort to repeal interest rate cap
Australia’s labour market is tightening, governor says
Australia’s labour market is tightening, governor says, but higher wages are only evident in ‘certain pockets’ of the market
FSB weighs effects of post-crisis reforms on central clearing
Report finds incentives to centrally clear are strong in the “systemic core” but weaker elsewhere; some rules could benefit from adjustment
Competition strengthens banks close to insolvency – BoE paper
Competition policy’s impact on banks varies depending on the underlying health of the individual firms, BoE paper says
FPC better equipped for crisis than FSOC – BoE paper
Paper compares how macro-prudential regulators in UK and US would handle a 2008-style crisis
Fed’s QE contributed to increased risk-taking by lenders – research
Mortgage real estate investment trusts increased leverage following Fed’s asset purchases
Bank of Israel begins push for open banking
Regulation of APIs designed as part of several measures to promote banking sector competition
Indonesia launches new overnight benchmark rate
New rate replaces the quotation-based model with one based on transactions
BoE paper tests bond market ‘liquidity resilience’
Study of gilt futures draws on novel dataset to assess stability risks