Financial Stability
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”
Most central banks do not want more macro-pru powers
But minority of benchmark participants want governments to adopt measures in use elsewhere
‘Very little support’ for a US Treasury clearing mandate – Isda
Dealers and clients prefer carrot to stick in efforts to improve Treasury market liquidity
Lower income jurisdictions more likely to have sole regulator
Likelihood among respondents that central bank is only banking regulator declines as income rises
Central banks rarely administer deposit guarantee schemes
Lower-middle income countries less likely to have such schemes
Richer nations less likely to have central banks as sole macro-pru authority
Respondents from lower-middle income countries more likely to be only macro-prudential body
Activity-based regulation will not guarantee level playing field – BIS paper
Authors propose framework to clarify use of entity- and activity-based regulations
Central bank boards often used for stability decisions
Institutions from high income countries most likely to give stability remit to boards
UAE central bank issues guidance on politically exposed persons
Measures build on AML/CFT requirements following FATF greylisting in March
RBA hits out at further delay to new clearing system
Blockchain-based system for Australian Stock Exchange won’t be operational until at least late 2024
More depositors in Henan and Anhui to have frozen funds repaid
Chinese authorities announce repayments for depositors with savings of up to 250,000 yuan
Taiwan governor says ‘no need to worry’ about capital outflows
Yang Chin-Long says Taiwan has sufficient foreign reserves to handle potential FX volatility
BoI reshuffles banking supervision department
Heads of division will switch positions in a bid to foster new thinking
Is the US heading for stagflation?
US academics weigh up the risks – and whether the Fed can avoid the worst outcomes
MAS to consult public on regulating stablecoins
Chairman says central bank will consider reserve requirements for stablecoin issuers
Central Bank of Oman warns of climate risks to financial stability
Physical and transition risks identified in the oil-exporting country
South Africa risks FATF sanction as legacy of state capture endures
Central bank finds thousands of bank clients have missing citizenship and incorporation data
Australia rolls out revised cyber testing regime
‘Corie’ programme reflects the scope and long time horizons of state-sponsored hackers
Chinese authorities repay more depositors amid banking scandal
Analysts say the banking crisis in Henan and Anhui could precipitate more rural bank runs