Financial Stability
ECB changes collateral rules in effort to shield bank funding
Assets below investment grade will be accepted by ECB as collateral until September 2021
IMF launches new dollar emergency liquidity facility
Facility could fill “critical gap” left by central bank dollar swap lines, senior IMF official says
Banks’ ‘geographic complexity’ raises some risks and cuts others – BIS paper
Global reach has complex effect on banks’ risk profiles, authors find
Lebanese central bank tries to stem currency crisis
Central bank unfreezes dollar accounts at sharply reduced rate as future of banking sector is unclear
IMF announces four more major aid packages
Haiti receives half of IMF funding quota while Moldova, Bolivia and Côte d’Ivoire get 100%
FSB consults on cyber attack ‘response and recovery’
“Efficient and effective response” is critical to minimising the financial stability impact, report says
MAS lends support to SMEs through new programme
Ravi Menon says banks are expected to make loans to small businesses at a lower cost
‘Step up to the plate’, New Zealand regulators tell banks
Council of regulators expects banks to deliver lending and affordable customer products
BoE and ECB weigh calls to follow US lead on capital relief
European regulators face pressure to exempt sovereign exposures from leverage ratio
Global carbon taxes are coming: central banks must prepare
The next financial crisis could be a green one. Are central banks doing enough to prepare?
Fed paper examines drivers of US leverage
Economic growth can be major influence even without loose monetary policy, researchers say
Bank of Korea expands lending in new emergency measure
Bank of Korea will lend to insurers and brokers as well as banks in bid to avoid funding squeeze
Book notes: Crisis spaces, by Costis Hadjimichalis
“Don’t buy this book, unless you are a dedicated Marxist”
IMF’s new credit line will fill “critical gap” – Georgieva
Short term liquidity line will grant member countries up to 145% of their quota
Podcast: adapting economic education for demographics and fintech
St Louis Fed’s Mary Suiter discusses its programme for Native American economic education
Policy-makers making risky ‘one-round bet’ on Covid-19 – El-Erian
Former Pimco chief worried about ability of policy-makers to tackle a ‘second wave’
Colombia cuts reserve requirements in extraordinary meeting
Measures permanently inject $2.3 billion in liquidity, says central bank
Regulators must enforce stronger payment data protection – CPMI
Payment oversight needs to be updated to accommodate fintech firms and protect consumers
FSB co-ordinating Covid-19 response – Quarles
Board is focused on protecting financial stability both during and after the pandemic, chair says
Fed takes first step to unwind repo support
Repo market is showing signs of “more stable” conditions, New York Fed says
Financial resilience may be tested further by Covid-19 – IMF
“Sudden stop” in credit markets could feed back to real economy, and requires a “forceful response”
El-Erian on Covid-19 policy risks, ‘zombie’ markets and central bank capture
Former Pimco chief says Fed has gone too far, market function rules needed and chance opens for shared policy load
Beware of capital: much ado about nothing?
Capital increases can be offset by asset valuation, provision and income recognition forbearance