Financial Stability
High-frequency traders impose costs on others – BIS paper
Study of dark pools finds HFTs almost never provide liquidity, while raising the cost for all
IMF to make changes to financial assessment programme
Fund says FSAP should focus on smaller financial companies, business models and risk management
Reports of cash restrictions in Niger
West African central bank froze relations and closed local offices after July 26 coup
Government employment has not recovered from pandemic – Fed
Low wages could be responsible from 450,000 missing state and local government workers in US
BIS paper’s guide to monitoring ‘highly leveraged’ non-banks
Using new data sources can help to shed light on an opaque sector, authors say
Inequality rising in the US – Minneapolis Fed report
“Government intervention largely eliminates the cyclicality in inequality at the bottom,” research says
Supervisory soft skills: working in a consensus-driven environment
New studies highlight the importance of supervisors being able to say ‘no’ – and persuade banks to act accordingly, writes Manoj Singh
Fed leadership divided on proposed capital rules
Powell warns rules could push activity into shadow banking
US bank lobbying spending increases sharply in Q2
ABA and ICBA increased their spending by 132.6% and 264% respectively between quarters
European banks pass stress test’s 2023 adverse scenario
Tested banks had higher CET1 levels after adverse scenario than in 2021, EBA says
US credit application rejections increase sharply
Automobile loan rejections hit highest level since NY Fed began measuring in 2013
Bank of Korea to boost emergency liquidity over bank run fears
Central bank will lower rate and accept more collateral amid scare over credit union’s deposits
Stefan Ingves on central bank failings on inflation and financial stability
Riksbank veteran speaks about liquidity, interest rate and non-bank regulatory reforms, and the need for explicit legal definitions for digital money
US banks need higher capital levels, warns Kashkari
Banking stress may re-emerge if inflation is entrenched, Minneapolis Fed president says
ECB paper analyses carbon pricing schemes
Rising compliance costs can push firms away from green innovation, paper finds
Climate change: a new financial risk for central banks
Overcoming ‘analysis paralysis’ and the lessons in capturing climate-related financial risks on the Deutsche Bundesbank’s balance sheet
ECB consults banks on data management and risk reporting
Most of eurozone's largest banks do not have adequate capabilities
PBoC steps up support for yuan
Chinese central bank eases limit on firms’ overseas borrowing and keeps key rates unchanged
ECB paper models ‘state-dependent’ impact of capital ratios
Model simulates ratio changes’ effects on credit supply in different macro-financial conditions
FSB unveils crypto regulation framework
Recommendations were toughened to reflect failure of FTX and terraUSD/luna stablecoin
Hong Kong proposes raising deposit insurance
Proposed change will bring the ratio of depositors being covered to 92%, regulator says
Collateral use could destabilise markets, BIS economists warn
Borio and co-authors highlight “seismic shift” in markets and call for action by policy-makers
US regulators fine Bank of America $150 million
BoA pays out nine-figure penalties for consumer malpractice for second year in a row