Financial Stability
Banque de France pledges to drop coal-linked assets by 2024
French central bank will also cut oil and gas exposures, and oppose new fossil fuel projects
Sectoral shocks drive non-bank credit cycles – BIS paper
Authors explore interaction of bank and non-bank credit cycles
FCA clamps down on consumer protection breaches
Nearly 10% of firms see application for consumer investments blocked, data reveals
BoE reassures foreign banks on post-Brexit booking models
EU banks that lost passporting rights after Brexit are unlikely to have to establish UK subsidiaries
Eurozone needs major resolution reforms, Enria says
ECB supervisor says policy-makers should create new tools to deal with medium-sized banks
FCA court victory gives clarity to SMEs over Covid disruption
Court ruling will see a larger number of businesses receive payouts from their insurers
Debt-service ratio limits have greatest welfare benefit – BoE research
Authors find macro-prudential tools can also boost the transmission of monetary policy
Bank of Italy paper looks at economic impact of disasters
More frequent disasters make economic effects larger and non-linear, researcher finds
IMF welcomes Rwandan central bank’s Covid response
National Bank of Rwanda funnelled liquidity to banks and cut policy rates
Banks must be able to explain AI models – Brainard
Fed governor says solving ‘black box’ problem is important first step in improving AI governance
BdF paper looks at French law on climate disclosures
Law led to sharp cut in French firms’ holdings of fossil fuel-related instruments, research finds
RBI tells banks to prepare for delayed impact of Covid-19
Banks have avoided worst of the pandemic, but they must now raise capital, central bank says
US Fed facility bought Libor bonds with ‘weak’ fallbacks
Industry figures express surprise over purchases linked to doomed benchmark
Some firms need to provide ‘better’ information to BoE – David Bailey
Executive director says BoE must have sufficient influence over supervisory outcomes post-Brexit
IMF raises precautionary balance target by a quarter
Some executive board members wanted higher raise amid uncertainty over pandemic’s impact
Paper presents forecasting method for bank losses
Bank of Finland paper attempts to forecast both “expected” and “unexpected” banking losses
Central banks must become ‘market-makers of last resort’ – BoE’s Hauser
Measures used in Covid-19 crisis are insufficient for the long term, BoE official says
Macro-prudential policies cut liquidity trap risk – ECB paper
Fall in systematic risk boosts natural interest rate and reduces intensity of liquidity traps, paper finds
BoE officials welcome stronger post-Brexit regulatory powers
Andrew Bailey says UK must not become a “rule-taker” on financial services
Hernández de Cos encourages banks to use capital buffers
Basel Committee chair says it is “only a matter of time” before losses become apparent
MAS completes first phase of AI ethics initiative
‘Veritas’ aims to tackle bias in AI-driven financial services
The role of Tips for the future payments landscape
Tips could play a critical role in providing the infrastructure for a digital euro as well as facilitating fast and efficient cross-border payments
Georgian central bank starts operating new resolution framework
NBG says new resolution system will greatly increase Georgia’s financial stability
Rwanda’s central bank may need to bolster support – IMF
Lack of fiscal space means central bank may be last resort, says fund report