Financial Stability
Bulgaria: long live the currency board
Bulgaria should reject the euro and extend its currency board to cover bank deposits
Yield curve models overstate chances of US recession – ECB research
Models need to account for effects of QE asset purchases on bond premia, authors say
RBI tries to break firm’s dominance in retail payments
NPCI was launched with backing from the central bank, but may have gained too much market power
DNB to tighten macro-pru over real estate fears
EBA says Dutch central bank fears overheating after house prices in large cities exceed previous peak
Fed to stress-test banks’ leveraged loan exposures
Test features leveraged loan shock; scenario includes biggest-ever rise in unemployment
EU regulators must end ‘tick-box’ approach to money laundering - EBA
First EBA report on national supervisors’ AML/CFT approaches says many agencies fail to co-operate
IMF seeks to improve ‘climate stress tests’
Effort hampered by lack of good data and failure to develop “green taxonomy” – IMF officials
New payments platform helped transfers during Australian bushfires
RBA was able to get money to those affected ‘immediately’, says Philip Lowe
ECB monetary policy was weakened by regulation – Bundesbank paper
Tighter regulation reduced lending by weakly-capitalised banks from 2008 to 2018 – researchers
Stress tests should be ‘two-stage’- Donald Kohn
Results for first test could be used to model second scenario, says senior BoE official
Basel III changed securities dealing – Bank of Canada paper
Regulations have changed dealers’ behaviour and reduced risk, study finds
Eurozone banks increase illiquid assets after solvency shocks – DNB paper
Shift in asset holdings could create asset price distortions after banking crises, researchers say
Thailand cuts rates as coronavirus threatens growth prospects
Central bank lowers interest rates 25bp on concerns outbreak will hamper prices and tourist revenues
Sharon Donnery stresses international co-operation role in financial stability
Irish deputy governor explains macro-prudential measures implemented since global financial crisis
US regulators propose third Volcker rule revision
Banks could soon regain permission to invest in speculative funds, but one official dissents
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