Financial Stability
US’s first Libor-replacement term rate coming in 2020
Staff at the New York Fed are working on a series of backward-looking averages
US and UK regulators strike deal to protect derivatives trading post-Brexit
Joint statement indicates continued co-operation, “whatever form” Brexit takes
NY Fed paper scrutinises post-crisis CDS market
Little research has been done on the market at a “granular level”, authors say
Estonian and Danish authorities trade accusations as further AML scandal breaks
Swedish, Estonian and Lithuanian authorities announce joint investigation into Swedish bank
Most financial stability committees lack policy tools, researchers say
Many committees lack good internal processes and ability to implement policies, authors say
Bank of Jamaica increases efforts to stimulate inflation
Central bank cuts policy rates and reserve requirements to spur credit growth
Chinese premier clashes with central bank over credit expansion
PBoC rejects premier’s warnings over interest rate arbitrage and bill financing
Australian governor says productivity rises needed to boost incomes
Lowe told lawmakers falling house prices will not ‘derail’ Australian economy
World is not running out of safe assets – BIS’s McCauley
Supply of safe assets can comfortably meet demand at present, BIS economist says
US bank interconnectedness is falling – San Fran Fed paper
New method focuses on idiosyncratic factors to identify possible links, researchers say
Buffers should not be rebuilt too quickly – Bank of Canada paper
Requirements should be lower during crisis recovery to avoid bank default, researcher argues
Former Fed chairs join over 3,000 economists in call for carbon tax
Economists including central bankers and Nobel laureates demand action on climate change
EBA probes alleged AML failings by Danish and Estonian authorities
Estonia and Denmark criticise each other’s ‘failings’ over supervision of scandal-hit bank
Climate change: a new challenge for financial stability?
What is the role of central banks when it comes to climate change risks?
Fourth non-bank gains BoE settlement account
Bank of England continues to level the playing field with new entrant FairFX
Nordic-Baltic crisis simulation seeks to reinforce collective response
Nordic-Baltic Stability Group carried out first region-wide crisis scenario in January
The Brexit conundrum
Bank of England has only limited room to respond to hard Brexit
Volcker rule helped curb equity market risk – researchers
Banks had large trading exposures to equity market risk before the rule was introduced, they find
Weak EU banks more likely to prop up ‘zombie firms’, ECB paper says
EU needs insolvency reform to reduce proportion of uncompetitive firms, researchers argue
IMF prepares to overhaul its financial surveillance
Fund agrees with IEO report that there is much room for improvement, but budget is an issue