Financial Stability
US bank supervisor creates new division for largest banks
New FDIC division offers simplified structure that fosters greater collaboration, chairman says
Higher US capital buffers leave firms’ debt unchanged – Fed paper
Individual banks cut lending due to higher capital buffers but firms find other lenders, researchers say
IMF finds weaknesses in two Bahamian banks
Improved supervision and surveillance measures can strengthen resilience, fund recommends
‘O-SII’ limits decreased risky lending – ECB paper
Lending to risky borrowers fell without lasting impact on growth rates, researchers say
RBNZ accepts criticism on supervision of CBL Insurance
The insurer was placed into full liquidation in November 2018
BoE’s Cunliffe says housing tools have worked
More evidence has emerged on “borrower-based” tools since they were first tested, deputy says
Russian central bank tries to cut consumer lending
Bank of Russia puts limits on “payday loans” and expresses concern over growth in unsecured loans
UK regulators welcome plans for clearer green mandate
Government unveils first “green finance strategy”, including changes to policy remits
Bank of Canada collaborates with private sector on cyber defence
New partnership with private sector bridges gaps in cyber resilience co-ordination, Poloz says
Israel could be vulnerable to global shock – central bank
Worsening liquidity conditions in local markets could amplify a global crisis, Bank of Israel says
RBI: bank balance sheets appear to be on the mend
Turbulence of 2018 may have forced non-bank finance firms to face up to risks, says central bank
Large US banks pass Fed’s second round of stress tests
Fed approves capital plans of 17 of largest banks, which now can increase dividend payments and share buybacks
Basel Committee overhauls leverage ratio to tackle ‘window dressing’
New disclosure rules aim to end “unacceptable” quarter-end rush to cut leverage
US bank competition weaker than thought – St Louis Fed paper
Measuring off-balance sheet actives shows some banks have 10% more pricing power, says researcher
Optimal capital may be higher than previously thought – Basel Committee
Study finds net long-term benefits to higher capital levels
Switzerland should tighten macropudential policies – IMF directors
Authorities should strengthen financial regulator and address real estate risks, IMF chiefs say
Illiquid funds could pose global systemic threat – Carney
Some funds are “built on a lie” and market-based finance is bringing new risks, BoE governor says
More work needed on liquidity rules – BoE’s Saporta
Victoria Saporta says aspects of liquidity regulation still need enhancement