Financial Stability
Alternative funds play key role in spreading shocks – study
Spillovers rose dramatically during Covid-19 stresses, authors find
Fed feeling its way with new inflation framework
Average inflation targeting is broadly dovish, and could see rates stay lower for even longer
CPMI tracks further decline in correspondent banking
Number of active correspondents down over 20% since 2011, latest data shows
Klaas Knot on ECB policy-making, the FSB and central bank ‘capture’
The DNB president talks about unconventional policy, inflation target ‘bands’ and ‘circuit-breaking’
Japan’s economy needs bolder policies
PM Abe announces decision to step down with many goals still unachieved
ECB ready to adjust its policy instruments – Philip Lane
MAS chairman warns post-pandemic labour markets will need new public policies
Malta’s banking sector should withstand pandemic – central bank
Central bank says some lenders may struggle, but results of stress tests show most banks are secure
Regulators must deal with AI risks – HKMA report
AI systems must keep “humans in the loop”, expert tells Central Banking
Argentina requests new IMF programme
Government and central bank say economic stabilisation is not possible without recovery
Thai governor calls for bigger fiscal boost
“More needs to be done”, Santiprabhob says, as Thai economy faces major contraction
RBNZ to chair Pacific infrastructure working group
New Zealand central bank given role after drafting law on FMI regulation
IRB approach can squeeze credit supply- Bank of Italy paper
Costs of credit for private firms from IRB-regulated banks rises as instability increases, paper says
After Covid, CCPs face calls for revamped disclosures
Banks and buy-side firms working with clearers to provide more granular info on margin shortfalls
Deposit insurance schemes must be credible – Bank of Portugal paper
Cypriot and Portuguese insurance schemes failed to stop bank runs due to low credibility, researchers say
Stress test results affect consumer credit – Philadelphia Fed paper
Banks reduce credit supply after worse-than-expected stress test results, researchers find
RBI launches national financial education strategy
Educational push complements rapid improvement in Indian financial inclusion, RBI says
South Sudan has no forex reserves, deputy governor says
Central bank is unable to intervene as currency plummets on parallel markets, official says
Financial indicators can warn of European growth risks – ECB paper
Index that aggregates financial variables in non-linear way provides most information – researchers
EU hands CCP members a narrow win on skin in the game
Clearing members could use the final rules to push for higher CCP capital globally
Mexican sovereign debt faces tighter conditions - SF Fed paper
Liquidity premiums reached record highs in pandemic while foreign holdings fell, researchers find
Banks are crucial investment source for French firms – BdF paper
Researchers use BdF database to examine how French companies finance their investments
Rising debt has weakened eurozone – Bank of Spain paper
Highly indebted countries face lower output and limited ability to respond to crises, researchers say
RBI lines up ‘pan-India umbrella entity’ to shake up retail payments
Firm “may be permitted” to hold an account at the central bank