Commentary
Most central banks seek improved regulatory frameworks
Key areas include laws on systemically important banks, liquidity risks, insurance and fintechs
Limit on insured bank deposit payouts averages $50,000
One in 10 jurisdictions lack any deposit insurance fund
Two in five central banks see need for more macro-pru tools
Caps on loan-to-value ratios are respondents’ most actively used policy
AI most widely used for document preparation in financial stability
Smaller financial stability teams less likely to utilise technology
Only 5% of central banks reveal individual bank stress-test results
Respondents share details of how stress scenarios are developed
Central banks with resource deficiency tend to pay higher salaries
Average financial stability budget also higher in units with that report non-staff resource shortage
Financial stability staff sufficiency improves year on year
Most central banks report contentment with non-staff resources
Most central banks co-ordinate monetary and financial stability tools
Cross-scenario evaluation and committee overlap cited as areas of interaction
Supervisors widely use suptech tools for data collection and validation
AI use is growing but remains much less widespread than suptech
Resolution framework update planned by 56% of supervisors
Non-central bank supervisory authorities less likely to have bail-in powers
Collateral pre-positioning reported in half of jurisdictions
Most supervisors believe banks are ready to access emergency central bank liquidity
Supervisors report low adoption of newer global standards
High income supervisors more likely to have regulations in place
Data automation at ‘moderate’ level in most supervisors
Over 70% of supervisors plan to upgrade data collection in the next year
Three in five supervisory authorities publish oversight outcomes
Majority of respondents release supervision details in annual report
Digitalisation is top strategic priority for supervisors
Majority of supervisors have a strategy document but only half make them public
Most supervisors monitor banks’ exposure to non-banks
But majority do not apply Pillar 2 requirements specific to non-bank exposures
Supervisors review banks’ asset quality at varied frequencies
Middle income supervisors tend to review assets more often than high income counterparts
Systemic banks prioritised in onsite inspections
Supervisors’ activities commonly include interviews, reviews and verifications
Onsite inspection frequency tailored to individual firms’ risk profiles
All authorities in high and middle income countries engage in risk-based exercises
Pillar 2 supervisory requirements broadly decided at national level
Only 15% of authorities operate regional supervision offices
Supervisors rate resource sufficiency higher than staffing
Annual salary of supervision officials averages just over $40,000
Most supervisors have mandate to oversee non-banks
Supervision department staff average just over 150 individuals
Handful of central banks have bilateral payment links
Projects are nascent and growing, but some countries seek multilateral links instead
Central banks favour instant payments over CBDCs
Interoperability of systems and financial inclusion drive decisions among survey respondents