Financial Stability
AI could fundamentally alter market dynamics – Fed study
Tech is not purely algorithmic as it has inherited human biases, say authors
Book notes: Bankers’ trust, by Aditi Sahasrabuddhe
A novel investigation into how trust among central bankers – or lack thereof – helped and worsened crises of the past
Weak dollar mitigated April tariff shocks – BIS’s Maechler
Greenback’s depreciation boosts risk appetite and lowers import costs, deputy general manager says
NBER paper explores drivers of collateral prepositioning
Authors ask why US banks choose not to pledge all their available collateral at the Fed
Book notes: Private finance, public power, Peter Conti-Brown and Sean H Vanatta
A detailed history of bank supervision in the United States from 1789 to 1980
BIS warns of elevated equity prices amid ‘sanguine’ markets
High stock valuations “sit oddly” with fiscal sustainability concerns, according to quarterly review
US consumers’ expectations of finding work hit new low – study
Mean perceived probability of a newly unemployed person finding a job fell to 44.9%
AI opens new possibilities to approach core mandate – Nagel
Bundesbank president says technology enables central banks to deal proactively with stability risks
Bank of Burundi to overhaul country’s market operations
Central bank teams with LSEG to upgrade east African country's financial market infrastructure
AI ‘explainability’ a growing problem for supervisors – paper
Better guidance may be needed on model risk management, Basel-based FSI says
ECB working to simplify banks’ annual health checks – Donnery
Srep will become more tailored to lenders, says supervisory board member
Financial Stability Benchmarks 2025 – model banks analysis
Data breakdowns reveal differences in risk perceptions, staffing and AI usage
Geopolitics, crypto and inequality are systemic risks – ESRB panel
Geopolitical risk is shaping markets, institutions and the financial system, says Olli Rehn
BoE economists outline model of liquidity-solvency spirals
Model aims to test banks against the sort of interactions that led to collapse of SVB and Credit Suisse
Lagarde says US-EU deal lowered uncertainty ‘considerably’
ECB president voices concern over Fed independence, French debt
Financial Stability Benchmarks 2025 – executive summary
Data sheds light on central banks’ assessment of tariff risks and other financial stability threats
Belize clarifies moneylender annual fees cap at 144%
Central bank says it is striving to reduce overall fees, improve transparency and cut predatory lending
A not-so-stable Genius Act?
New stablecoin rules raise monetary sovereignty and financial stability concerns
Financial Stability Benchmarks 2025 report – the threat from tariffs
Benchmarks highlight how many central banks see tariffs as a high risk to financial stability
Hong Kong allows collateral reuse in offshore yuan bond repos
HKMA says changes will increase offshore participation in mainland China bond market
North Macedonia reshuffles reserve requirements
Central bank eyes more long-term, dinar-denominated savings and stronger deposit base for banks
Six central banks report increase in AML/CFT risks
Nine in 10 institutions indicate having sufficient powers to deal with risks
Fed ends crypto and fintech supervision programme
“Novel activities” programme will be folded into normal supervisory processes
Central banks see cyber attacks as key financial stability risk
Respondents also reveal other elevated risks, including geopolitics and tariffs