Financial Stability
BoE, MAS and BoT to test synchronised FX settlement
Project will use ‘synchronisation operator’ to achieve atomic settlement
ECB fines Spanish bank for not complying with climate rules
Supervisor imposes first-ever financial penalty over environmental prudential requirements
Bank of Botswana warns of ‘risk spillovers’ to banking sector
Central bank highlights ongoing impacts of banking sector liquidity squeeze
Belgium simplifies capital buffers, increases CCyB by 25bp
Mortgage-specific measure to be folded into single, general buffer
Bundesbank following US instability ‘very closely’ – Nagel
Central bank president says AI and geopolitics pose risks to financial stability
Ex-governor says Fed should use Treasury derivatives in crisis
Doing so could split response from monetary policy and hedge interest rate risks, argues Jeremy Stein
BoE paper explores redistribution from macro-pru tools
Evidence suggests there are stability benefits but also costs from using borrower-based tools
Carney to direct BoC to administer open banking and stablecoins
PM’s first budget plan includes funding allocation for central bank to administer relevant legislation
Posen predicts Supreme Court will side with Cook
However, PIIE president tells panel that justices are still likely to undermine Fed independence
FATF delisting of African nations a transactional move, says analyst
Organisation rejects suggestion that political factors were behind countries being taken off ‘grey list’
New Zealand banks can withstand geopolitical shocks, says RBNZ
Latest stress test monitors impact of recession and liquidity crisis triggered by potential global events
Stress-test transparency: how much is too much?
The transparency drive to disclose bank stress-test results comes with costs
AWS outage barely affected Europe’s central banks
Monetary authorities say robust risk mitigation frameworks helped them to largely avoid fallout
Asia-Pacific central banks list geopolitics, AI among key challenges
EMEAP, representing monetary authorities from across region, commits to strengthening co-operation
Former Kansas City Fed chief sounds alarm over banks’ leverage
Hoenig says largest lenders are not adequately capitalised for their risks
‘Opaque’ AI poses supervisory challenge, says BdF’s Beau
Deputy governor says focus should be on data required for ‘new elements’ of EU’s AI act
NBER paper maps out international financial network
Rey and Stavrakeva show equities markets play crucial transmission role
ECB does not have rule-making power – Elderson
Binding decisions are based on existing regulations and not supervisory expectations, board member says
San Marino blocks bank sale, looks to quell instability
Central bank says financial system is “solid and resilient”
Concentrated IT market poses systemic risks, Dutch say
AFM and DNB urge Europe’s financial sector to diversify digital service providers
Fed researcher makes case for liquidity support for non-banks
Central clearing, liquidity regulations and balance sheet policies may be key, says author
BoE’s Woods rejects call to exempt gilts from leverage rule
Bank capital regime must account for sovereign bonds’ interest rate risks, PRA chief says
BoE plans system-wide test on private credit risks
Bank aims to probe market after First Brands and Tricolor collapses raise alarms about subprime lending
AI, low productivity, and trade in focus at G30
Georgieva, Bailey and Lagarde speak on stretched AI evaluations and distortionary trade policies