Central Banks
Fed’s 2021 stress test includes major asset price shock
CCAR will evaluate 19 largest banks; scenario includes 55% fall in equity prices
RBI launches fresh bid to reform co-operative banks
Former deputy brought in to investigate measures to strengthen the troubled sector
The Covid crisis, central banks and the future
Crisis responses have had positive initial outcomes, but also exacerbated significant underlying challenges that raise concerns related to exit strategies and the future for central banks
French governor calls for ECB to make radical carbon shift
ECB is not sufficiently accounting for exposure to climate risk, says Villeroy de Galhau
Mexican central bank board cuts policy rate
Rate-setting board unanimously votes for looser policies despite above-target inflation
Covid-19 has weakened UK households’ finances – FCA survey
Over 13 million adults will ‘struggle to make ends meet’, new survey says
Evidence of central bank research bias is ‘mixed’ – RBA paper
Results contrast with another recent study that found bias in research on QE
Largest banks’ funding advantages grew in pandemic – research
Biggest banks’ perceived risk advantage grew after onset of Covid-19, researcher finds
The changing data landscape: Part 2
Central Banking speaks to Philip Abradu-Otoo, Juan José Ospina and Howard Chang about whether there is a need to change underlying infrastructure to bolster data-driven policy-making
Book notes: The political economy of the special relationship, by Jeremy Green
Unsatisfactory story about the decline and resurgence of the UK’s importance in the global financial system
People: BoE’s executive director to leave
Alex Brazier to leave BoE in September; ECB looks for senior climate official
Andrew Bailey attacks European Union over regulations
EU risks regional dispute as it holds UK to standard applied to ‘no other country’ – BoE governor
Bank of Canada may speed research into central-bank e-currency
Deputy governor says digital cash “not foregone conclusion,” criticises crypto
BIS paper tests impact of macro-pru on non-banks
Domestic and foreign prudential policies have opposite effects on non-bank share, authors find
Brazilian congress passes central bank autonomy law
Law gives CBB autonomy and sets renewable four-year terms for governor and MPC members
Myanmar deputy governor held by military
Wife says Bo Bo Nge’s whereabouts are still unknown; central bank staff join anti-coup protests
Central banks look to shockproof models in wake of Covid-19
The Covid-19 crisis caused many central bank models to break down. Economists at the St Louis Fed, Bank of Spain and ECB were quick to innovate and say they will continue testing new tools
Corruption in Aruba is increasing, central bank survey shows
Citizens believe government has “no real will” to fight corruption and may benefit from it
Bank efficiency has little effect on Chinese monetary policy – Finnish paper
Chinese banks with very high or low loan-to-deposit ratios are most affected, researchers find
Bank of Mexico moves to counter controversial cash law
Financial inclusion proposal follows draft legislation to make central bank buy up spare US dollar cash