Europe
ECB holds rates as Lagarde expresses optimism
Several observers think rate cut before June is more likely as ECB says policy is working
ISO 31000 and COSO–ERM remain central banks’ leading standards
Central banks from high income countries less likely to use COSO–ERM
Faster deposit flows will affect bank runs, ECB paper says
Bindseil and Senner say several factors are increasing size and speed of deposit runs
Mean risk management salary greater in high income countries
Salaries average $72,738 in rich countries but $33,464 in upper-middle income nations
Over half of ECB staff think Lagarde’s work is poor, union claims
ECB rejects survey as flawed and says its own figures show high levels of pride among staff
Most central banks have difficulty hiring skilled cyber security staff
Respondents highlight pay disparity, skills gap and technological advancements as factors
Monetary policy affects insurers’ balance sheets, ECB paper finds
Eurozone insurance firms increase asset holdings and risk-taking if policy loosens, researchers say
Exit rate of risk management staff averages over 10%
Workers in middle income institutions tend to leave at a higher rate
European monetary transmission ‘weaker and slower’ – IMF paper
Latest tightening cycle weakened by market concentration and ample liquidity, authors find
Operational and financial risk units have largest staff
Upper-middle income institutions have largest average total number of risk employees
Enterprise-wide risk management widespread among central banks
Few institutions maintain use of department-level and damage limitation approaches
Most central banks lack climate risk units
Just under half of institutions say they have difficulty hiring staff with matching skills
Cyber and fintech risk policies rejigged in a few central banks
Departmental structure varies across jurisdictions
Minority of central banks altered risk functions in past two years
Amendments emanate from factors including technology and climate change
Bundesbank paper looks at role of carbon emissions disclosures
Obliging firms to increase transparency boosts low-carbon investment, researchers find
Few central banks lack risk management strategies
Two respondents do not have a risk strategy and slightly more lack a defined risk tolerance
De Guindos says eurozone faces technical recession
ECB vice-president says disinflation process is likely to slow in 2024
GRC systems remain scarce among central banks
Minority of central banks project adoption this year, others aim to upgrade
Most heads of risk management units report to governor or board
Risk management committees are more likely to exist in central banks than chief risk officers
Risk management units are most often centralised
Operational risks are the most covered area across participating jurisdictions
Inflation rises in Germany and France
German statistical office says energy price rise partly driven by base effects from earlier subsidy
Eurozone inflation affects fiscal policy, ECB paper finds
Authors say there is evidence of “turning point” for inflation’s impact on primary fiscal balances
ECB paper analyses indirect channels of interbank contagion
Eurozone’s interbank market vulnerable to sovereign debt and non-bank sector shocks, research finds
ECB invites entrants for wholesale ‘digital euro’ trial
CBDC work in 2024 will test Banque de France, Bank of Italy and Bundesbank DLT solutions