Financial Stability
Thai central bank issues debt-relief measures for conflict zone
BoT says hostilities may make repayments even harder in country with high household debt levels
Book notes: Making money work, by Matt Sekerke and Steve H Hanke
This book provides a critique of the post-crisis monetary and financial system, proposing changes that deserve to be broadly read
Oil shocks create ‘persistent’ labour downturns – IMF paper
Gains for oil-exporting countries are “comparatively modest”, say researchers
Supervision Benchmarks 2025 report – digital oversight
Benchmarking data reveals how supervisors structure their organisations, as well as their top strategic priorities and technology adoption
Consolidation likely among Nigerian lenders – analyst
Small lenders unlikely to meet CBN’s recapitalisation demands, says investment bank’s research head
Scrapping UK ring-fencing regime ‘not sensible’ – Bailey
BoE governor finds no fundamental issue with rule separating retail and investment banking activities
Non-banks pose hidden stability risks – Fed research
Credit lines to NBFIs are off firms’ balance sheets, thereby concealing potential hazards, say authors
HKMA dismisses reports it will establish ‘bad bank’
Monetary authority says lenders’ balance sheets are healthy and their credit risks well managed
Barr slams weakening of bank supervisory tests
Fed governor warns deregulation during boom times ushers in crises
More NBFI liquidity data could aid financial stability – ECB study
Research recommends active margin call monitoring for non-banks
BoE delays implementing new market risk framework until 2028
Finalising it could be “tenuous dream”, says expert
Yield curve affects banks’ ability to lend – Boston Fed study
Central banks should consider effects when calibrating balance sheet policies, say authors
US monetary policy has greater impact, BoK modelling shows
Researchers say findings show importance of diversifying export markets and monitoring US conditions
Tobias Adrian on the integrated policy framework amid tariff shocks
The IMF’s financial counsellor speaks about policy reaction functions to supply and demand shocks, scenario-based analyses, Treasury market dynamics and emerging market resilience
Data automation at ‘moderate’ level in most supervisors
Over 70% of supervisors plan to upgrade data collection in the next year
Sovereign bond yields affected by weather disasters – BIS paper
Countries with higher per capita carbon emissions also face greater borrowing costs
Book notes: Central banking at the frontier, by Thammarak Moenjak
This well-structured book provides a comprehensive overview of the challenges digitalisation poses for finance and includes possible actions for central banks
BoE shifts focus to non-banks in sovereign bond markets
Aggregated data on leverage and positioning reveals growing gilt repo borrowing by hedge funds
FSB sets up task force to tackle non-bank data gaps
“High-level” team will investigate leveraged trading strategies in core bond markets
How central banks manage their own cyber defences
Resilience against system breaches, ransomware and phishing attacks is in focus, alongside managing third-party risks and the threat of state actors to payment systems
Do not loosen capital rules, ECB tells national authorities
Central bank says there are no signs that requirements are constraining credit supply in eurozone
Most supervisors monitor banks’ exposure to non-banks
But majority do not apply Pillar 2 requirements specific to non-bank exposures
Tariffs worsen monetary policy trade-offs and inflation – study
Fed researchers find evidence of persistence in cost pressures stemming from levies