Central Banks
ECB and ESRB warn of financial stability risk from geopolitics
New model takes prediction data to show US domestic politics affecting eurozone financial markets
Book notes: 1929: the inside story, by Andrew Ross Sorkin
A compelling narrative offering fresh perspectives on the key characters, events and implications of the great crash
Derivatives hedging can weaken effect of capital rules – BIS paper
Banks increase use of credit default swaps when counter-cyclical buffers rise, study finds
Paper calls for ’systematic monitoring’ of cyber risks
Non-financial firms’ credit risk indicators not accounting for ‘sharp increase’ in incidents, say authors
Geopolitics a key focus for ECB supervisors – blog
European banks have fared well so far against shocks but must stay vigilant, senior officials write
BoK debuts bespoke AI for central bank use
Technology trained on Korean language inputs will aid research and compliance, Bank of Korea says
BNM holds policy and points to positive economic outlook
Malaysian central bank keeps rates at 2.75% and expects domestic growth momentum to continue
Supreme Court appears sympathetic to Cook
Conservative judges lament the way governor’s removal was handled and risks to Fed independence
Beige Books show promise at predicting recessions – study
LLM data on Fed reports is more accurate at forecasting downturns than yield spread, authors find
Fed study sounds alarm over algorithmic rises in credit limits
Researchers say US lenders are extending too much credit to subprime borrowers
Don’t count on central banks to buy public debt, says Lagarde
ECB president tells Davos panel that divergent global standards may puncture AI bubble
BI holds rates amid renewed concerns over its independence
Indonesian central bank says keeping rates at 4.75% will stabilise rupiah and encourage growth
Legal threat to Fed accelerates Asean+3 contingency planning
AMRO chief economist says central bank independence of paramount importance for stability
Risk management reviews are most common assessment method
Centralised teams are less likely to conduct external or management evaluations
Bailey underscores support for Powell
BoE governor also points to potential spillover risks to UK from events in US
Croatia’s Vujčić to replace de Guindos as ECB vice-president
Governor will be executive board’s first member from a post-2004 EU accession state
China leaves benchmark lending rates unchanged
One-year LPR stays at 3% and five-year rate remains at 3.5% following easing via structural tools
Europeans have more trust in compatriot ECB officials – study
ECB messages carry more weight when delivered by officials from one’s own country, research finds
Ricardian equivalence does not hold in reality, study finds
Researchers say consumers do not fully plan ahead for expected tax liabilities
India proposes linking Brics countries’ CBDCs
Bloc, which has already committed to improving payments interoperability, faces geopolitical challenges