Financial Stability
New Isda ‘fallbacks’ critical to making Libor transition a ‘non-event’
New protocol and supplement offer a transition away from Libor rates in 2021
BoE says banks can cope with Brexit and pandemic
But central bank warns EU actions are risking some disruption as transition period ends
Most authorities failed to build up buffers before Covid hit – Carstens
Supervisors face more problems once emergency support measures are withdrawn, says BIS chief
Fed joining NGFS would be a ‘game changer’ – Després
NGFS to increase study of monetary policy’s climate implications, head of secretariat says
Bank of Spain paper applies text mining to climate disclosures
Some climate disclosures found only in remuneration or Pillar 3 reports, researchers say
Could AI ever replace human bank supervisors?
Data collection and processing remains key in leveraging artificial intelligence
BIS warns of gap between cautious banks and buoyant markets
Report says exuberant market conditions may belie underlying risks
FCA details Mifid onshoring process post-Brexit
UK regulator has built equivalent systems to ensure firms can continue with Mifid reporting
Bank of Spain paper looks at loan origination times
Loan origination data provides important insights into banking stability, researchers argue
Saudis and UAE say shared CBDC is technically possible
“Project Aber” shows DLT can be used to upgrade cross-border payments, central banks say
Dollar Libor reprieve sparks fallback uncertainty
Popular settings to end in June 2023; market seeks clarity over timing of fallback spread triggers
Lebanese parliament demands central bank audit
Lawmakers say vote overrules banking secrecy laws and central bank must release documents
Is the RBI doomed to fail its ‘quest for financial stability’?
Covid-19 has set back progress on hard-won reforms
ECB paper looks at cross-border macro-prudential effects
Imposing capital buffers cuts risk-taking and lending by foreign subsidiaries, researchers find
Singapore non-bank firms can use real-time payments systems – MAS
“Major payment institutions” will be able to use two real-time systems from February 2021
ECB sets new climate risk requirements for banks
Survey of eurozone banks shows most do not disclose basic climate-related data, ECB says
ECB highlights new channel reinforcing sovereign-bank nexus
State guarantees indirectly increase banks’ exposure to sovereign risks through corporates
Green firms see equities rise as climate concerns grow – NBB paper
Researchers track relationship between media coverage and large firms’ equity values
RBNZ to re-impose loan-to-value limits from March 2021
Central bank records increase in mortgages granted to high-risk lenders
US banks cede to SOFR lending as credit hopes fade
Critics of risk-free rate say dynamic spread will be too late for transition
MAS unveils yuan funding for banks in Singapore
New funding scheme of up to 25 billion yuan replaces overnight funding facility
Forensic auditors walk out of Lebanese central bank
Finance minister says central blank blocked audit as president stresses investigation must continue
FSB warns of ‘breadth and magnitude’ of climate risks
Report warns climate risk could be more challenging to address than other economic risks