Macro-prudential
Central Bank of Chile sets first counter-cyclical buffer
BCC also warns government could face financing problems
Fed walking a financial stability ‘tightrope’
Experts disagree over US regulators’ use of systemic risk exception for deposit insurance
Macro-pru helps dampen global shocks – BIS paper
Authors find capital controls are less effective than prudential tools at offsetting shocks
Basel Committee chair reflects on CCyB effectiveness
Pablo Hernández de Cos suggests review of counter-cyclical buffer as uses of tool diverge
RBI says banking sector ‘stable’ as Adani rout continues
Securities regulator will investigate “if any information comes” to its notice
Capital buffers not all working as intended – BoE paper
Some banks raised rates and contracted credit supply during the Covid-19 crisis
Rethinking the CCyB
As central banks rush to replenish bank capital reserves, the countercyclical buffer may need some fine-tuning
BoE to stress-test non-bank sector for first time
“Exploratory” exercise will test market liquidity as officials call for “urgent” action on non-banks
Proportionality in bank regulation: striking the right balance
The ‘final’ Basel III framework contains elements designed to make the rules fairer while reducing regulatory arbitrage. This means careful analysis is required when making any proportionality adjustments in the EU single rule book, writes Maurizio…
Riksbank calls for housing and tax reforms to reduce financial risks
Financial system faces risks from highly indebted households and real estate firms, report says
Some CCPs struggle in BoE stress test
First central counterparty stress test finds firms come close to depleting their buffers in baseline scenario
BoE’s planned procyclical capital hike bewilders banks
Some doubt regulator will go through with counter-cyclical buffer hike while forecasting recession
Fintech needs better oversight as risks grow, FSI says
Basel-based group sees room for system-level testing and closer scrutiny of tech firms
Corporate debt is a growing threat to financial stability
Policy-makers need to take action as tighter financial conditions risk tipping firms into distress, says Pedro Duarte Neves
Rethinking regulation of the modern financial system
Bank of Italy’s Maurizio Trapanese writes that rules need to address uncertainty as well as measurable risks, entity types as well as activities, and should not be overly complex
RBI deputy sees ‘miles to go’ despite progress on bank reforms
Asset quality of Indian banks has been improving, says Rajeshwar Rao
Tackling private-sector debt in the wake of the pandemic
Navigating Covid-19 debt is more of a challenge amid gathered storms of inflation and war, write Roong Mallikamas and Benjamin Weigert
BoE paper models macro-prudential spillovers
Agent-based model sheds light on how housing market policies affect different groups, authors say
The international effort to manage NBFI risks: where do we stand?
The Covid-19 shock demonstrated more needs to be done to address stability risks posed by the NBFI sector. Maurizio Trapanese details progress made during the Italian G20 presidency as well as outstanding macro-prudential issues
PBoC resumes profit transfer to government
Transfer of $158 billion follows two-year suspension during Covid-19 pandemic
Reciprocity can curb macro-prudential ‘leakages’ – BIS paper
But gains can be small, which may explain limited use of reciprocity to date, authors say
BoE consults on removing macro-prudential rule
Affordability test has drawbacks and may no longer be needed, given other tools, says FPC
Banks still falling short of final Basel III requirements
Basel Committee says some metrics seem to have been impacted by Covid-19
RBI flags ‘emerging signs of stress’ in small firms
Stress tests indicate rise in Indian non-performing assets likely in coming months