Financial Stability
Margining added to liquidity stress after Ukraine invasion – BIS
Bulletin article examines how tool designed to promote stability can have undesirable side effects
ECB criticises Italy’s windfall tax on banks
Central bank warns measure could hamper monetary transmission and weaken lenders
BIS paper says reform to AT1 instruments ‘may be necessary’
Actual use of contingent bonds may clash with their original purpose, authors say
Data privacy and protection: non-negotiable supervisory equations
Manoj Singh says data protection is essential to modern finance, but throws up myriad supervisory challenges
NGFS launches framework on nature-related risks
Guide aims to create common approach for central banks and supervisors
Financial Stability Benchmarks 2023 – executive summary
Key findings of the 2023 benchmark, including resources, regulation, macro-pru, crime and future risk
Non-banks taking on significant ‘hidden leverage’, FSB warns
Off-balance-sheet positions have grown, but data on many parts of the system is poor
Former Central Bank of Barbados governor calls for dollarisation
Caricom has failed to integrate the Caribbean, says DeLisle Worrell
Financial regulators: one, two, maybe a few?
As Jamaica moves to introduce the ‘twin peaks’ approach to financial oversight, Ben Margulies assesses some of the pros and cons
BIS paper highlights powerful information effects during SVB run
Hearing about SVB made people more likely to run, but good communications helped stem the tide
FSB chair says world faces ‘pivotal’ moment
Tight policy and slowing growth signal financial stability problems ahead, warns Klaas Knot
Deep learning models are ‘fragile’, BoE paper finds
Models suffering from “Rashomon effect” need better supervision, authors say
Fed proposes long-term debt requirement for large banks
Governors Waller and Bowman express concern the rule doesn’t appropriately tailor regulation
Financial Stability Benchmarks 2023 report – how central banks confront risk
Central banks discuss resources, regulating banks and non-banks, macro-pru, crime and future risk
Macro-pru tools can cut risk of credit bust – IMF paper
Authors explore whether building buffers can increase resilience over the medium term
Vietnam joins South-east Asian cross-border payment bloc
Six Asian central banks have joined forces to build faster and cheaper cross-border payments
Almost all central banks run stress tests on lenders
Most respondents say they conduct tests more than once a year
Housing markets worry high income countries’ central banks
Middle income countries point to inflation and cyber crime as sources of risk
Powell gives hawkish speech at Jackson Hole
Fed chair warns monetary policy could do too little or too much
Most central banks say cross-border cyber co-operation is good
Respondents from upper-middle income countries most likely to say co-operation could improve
IMF modifies deal with Argentina
Fund disburses $7.5 billion ahead of elections despite finding government failed to meet some targets
BIS paper highlights costs and benefits of crypto regulation
Decision to regulate needs to be backed by data and clear frameworks, authors say
Most central banks report rise in cyber attacks
Majority say they co-operate well with other agencies on cyber risks
CPMI-Iosco report surveys CCP tools for ‘non-default losses’
Losses from investment risk or cyber attacks could threaten a CCP’s survival, report says