The Americas
Fed risks president’s ire by holding rates
Experts say decision was obvious way to go, given US labour market and inflation figures
Risk management reviews are most common assessment method
Centralised teams are less likely to conduct external or management evaluations
UK’s Orange Book risk approach rarely used by central banks
Only three centralised risk management departments utilise principle
Sticky fears about sticky inflation
Survey finds investors are not yet ready to declare victory on inflation – with good reason
Staff error is largest cause of op risk at central banks
Legacy systems tend to trigger most threats in jurisdictions with greater than average number of incidents
Experts decry ‘show trial’ of Fed chair
Probe slammed as politically motivated attack on Powell for doing his job
Central bank governors express ‘full solidarity’ with Powell
Lagarde and Bailey among signatories of statement in wake of Department of Justice investigation
Op risk incidents average over 100 a year among central banks
Financial impact is risk managers’ strongest metric for gauging incidents’ severity
Collateral velocity is disappearing behind a digital curtain
Dealers may welcome digital-era rewiring to free up collateral movement, but tokenisation will obscure metrics
Phishing and ransomware are central banks’ main cyber threats
Teams widely use training, monitoring and privilege management to mitigate cyber threats
Just under half of risk departments are sufficiently staffed
Units with satisfied staffing levels earn below global average annual salary
Mitigation and reporting are leading components of risk strategy
Decentralised teams more likely to embed philosophy in divisional decision-making
People: New governor in Malta
Plus: Bahamian governor reappointed and new vice-governor in Bosnia
Most centralised risk teams prioritise cyber security
Decentralised teams primarily cover credit and counterparty, op and market risks
Risk policies widely reviewed by committee in larger teams
Central banks with larger teams favour risk committees over CROs
Bowman’s Fed may limp on by after cuts
New vice-chair seeks efficiency, but staff clear-out could hamper functions, say former regulators
How Bessent learned to stop worrying and love the T-bill
Short-dated issuance shows no signs of slowing. Some fear it could end badly.
Fed cuts by 25bp amid another three-way split on FOMC
Miran votes for deeper cut, and Goolsbee and Schmid opt to hold, as experts point to stagflation risks
US banks hoping for end of DFAST global market shock
As Fed consults on stress-test reform, lobby group argues regulator is double-counting market risk
People: Former DNB chief Knot joins Systemic Risk Council
Plus appointments at BIS Innovation Hub and Turkish central bank