Financial Stability
Most central banks carry out frequent stress tests
All banks that carry out stress tests say they have improved financial stability
Fintech needs better oversight as risks grow, FSI says
Basel-based group sees room for system-level testing and closer scrutiny of tech firms
Chinese authorities announce $44 billion stimulus package
Authorities increase funds to power companies and farmers as country suffers from multiple crises
Cyber attacks on financial market infrastructure are rising
Two-thirds report recent increase in attacks, but 80% report good cross-border arrangements
Gontareva on Ukraine’s funding, NBU policy and reconstruction
Ex-NBU governor talks about fund shortfalls, finstab challenges, the CBR and post-conflict rebuilding
Joseph Stiglitz calls for rethink of macroeconomics
DGSE models have “nothing to say” about economic effects of Covid-19 measures, Nobel winner says
Over half of central banks say AML risks are rising
But most say central banks co-operate sufficiently across borders against money laundering
Australian banks must do more on climate risks, RBA official says
Green asset taxonomy must be appropriate for Australian conditions, says central bank official
Crypto assets may threaten Asian stability, IMF officials warn
Rising correlation between crypto and equity markets poses financial stability risk, say economists
PBoC urges big state banks to increase lending
Yi Gang summons bankers as PBoC says economy faces “critical moment’
Myanmar regime replaces governor
New central bank head Than Than Swe survived attack by gunmen in April
PBoC cuts key lending rates
Move follows unscheduled cut to two other rates after official data showed growing slowdown
Earnings in upper-middle income economies outstrip high income peers
Financial stability staffing tends to match jurisdiction’s income level
Most central banks lack primary oversight of NBFIs
Many institutions capable of regulating non-banks, but just a few solely exercise such powers
Book notes: The Fed unbound, By Lev Menand
This book highlights need for charter-like oversight of shadow banking sector
A quarter of central banks have insufficient financial stability powers
Some respondent institutions need new powers urgently
Middle income countries more likely to report rising NPL levels
Most high income respondents say NPL levels have fallen in last five years
Fed paper explores information problems in financial panics
Tight liquidity can cause investors’ beliefs to become “systematically divorced from fundamentals”
Banking resolutions are rare events in most countries
Two jurisdictions account for 77.9% of resolutions reported by sample
The PBoC, real estate debt and financial stability in China
Officials have restricted policy space due to efforts to contain property risks amid slowing growth
Reserve requirements most commonly used macro-pru tool
Responses show differences in measures favoured by high and middle income economies
Ukraine’s wartime economy faces possible crisis
Foreign donors must increase financing of Ukrainian government, former NBU governor Gontareva argues
Malaysian central bank plays down impact of potential data breach
BNM says Malaysia’s payment system remains “safe and secure”