Financial Stability
ESRB models long-lasting EU recession for stress tests
Tougher adverse scenario adopted because EU is “at an advanced stage of the financial cycle”
Watch out for Brexit cliff edge 2.0, experts warn
Measures to mitigate a sharp rupture for financial services could be less likely at end-2020
UAE, Bahrain and Nambia team up to tackle money laundering
Common framework will help nations share and analyse AML/CFT data
US leveraged lending rose further from 2018–19
Regulators urge banks to adopt risk-management measures to reflect changing market conditions
Cambodia’s blockchain payment network will go live in early 2020
National Bank of Cambodia to become first central bank to launch peer-to-peer payment system
Ukrainian central bank cuts rates as inflation falls within target range
NBU is optimistic on economy, but warns government over IMF deal and banking reforms
Twelve countries’ financial sectors under IMF spotlight in 2020
Fund reveals which nations will undergo financial stability assessments
Fed will ‘probably’ join green central banking group – Powell
Public has right to expect the Fed to ensure the system is resilient against climate change, says governor
US Democrats strongly criticise regulator
Some lawmakers accuse OCC head Otting of ignoring Congress over controversial lending proposals
BIS calls for wider adoption of FX Global Code
Some industry participants question the benefits of voluntary principles
Bank of Canada paper looks at risk in securities dealing
More complex dealer networks can increase probability of settlement failure, researchers find
IMF praises Somali reforms and says debt relief is possible
New agreement between IMF and Somali authorities prioritises central bank development
PBoC extends market closure as coronavirus spreads rapidly
Chinese central bank extends interbank markets closure and vows to maintain ample liquidity
Risky markets had a ‘spectacular’ 2019, IMF officials warn
Largest combined number of rate cuts since 2008 drove financial vulnerabilities, senior officials say
ECB reveals large banks’ individual capital requirements
Enria warns banks to improve profitability, saying “challenging environment” will not change soon
RBNZ supports plan for ‘fallback’ benchmark rate
New Zealand’s benchmark rate-setting body selects the central bank’s policy rate as fallback option
Kuwait’s central bank should relax rate caps – IMF
New legislation will encourage nationwide credit rating system, fund staff say
US mutual funds' liquidity risk on the rise – Boston Fed paper
Ratio of illiquid assets to net assets increased from 2009 to 2019, researchers find
‘Market clustering’ can destabilise equity prices – DNB paper
Researchers present new measure to examine impact of trading overlap on equities
DNB stresses risks stemming from financially fragile households
Central bank study shows more than 14% of Dutch population could not raise €2,000 in an emergency
Better IT protected banks during financial crisis – IMF paper
NPLs were 10% lower in banks with stronger IT infrastructure, research shows
Bad banks work, but not in isolation – BIS paper
Researchers study what factors lead to successful “asset segregation” schemes
ETFs are exposing EMEs to global capital flows – Fed paper
Sensitivity of ETF flows to global financial conditions is 2.5 times higher than mutual fund flows, researchers find
EU council may cut margin haircuts for CCP resolution
Proposals would close avenues for regulators to dip into non-defaulting members’ initial margin