Europe
Central banks see cyber attacks as key financial stability risk
Respondents also reveal other elevated risks, including geopolitics and tariffs
Uncertainty necessitates strong capital buffers – ECB
Central bank calls for increased attention to macro-pru and monetary policy complementarity
Minimum gilt repo haircut could boost stability – BoE official
Measure helps prevent build-up of extreme leverage among non-banks, FPC member Benjamin argues
Cyber attacks rise in three-fifths of jurisdictions
Central banks lacking incident response team report highest rate of attacks
ECB study finds banks window-dressing before stress tests
Lower-ranked lenders shifted risky assets ahead of 2021 and 2023 exercises
ECB’s Machado renews push for deposit insurance scheme
Breakthrough in resolution framework paves way for more integration, supervisory board member says
BoE’s Benjamin on market resilience, non-bank liquidity and the modern financial system
The UK central bank’s executive director for financial stability strategy and risk speaks about leverage in the gilt repo market, minimum haircuts and central clearing, and securing liquidity to where it’s needed
Majority of central banks have analysed effects of tariffs
Spike in levies seen as having varying degrees of impact on financial stability
Only 30% of central banks conduct non-bank stress-testing
Exercise tends to be less common in institutions with smaller financial stability teams
SNB opens poll on altitude-themed banknotes
Central bank asks public for views on designs based on Switzerland's ‘unique topography’
Most central banks seek improved regulatory frameworks
Key areas include laws on systemically important banks, liquidity risks, insurance and fintechs
The cost of inaction on wholesale CBDCs
A gap exists between demand in capital markets and most central banks’ research priorities as evolving risks accrue
Investment funds procyclical to bond markets – ECB blog
Vehicles sell sovereign debt in times of stress while other investors step in to buy it
Limit on insured bank deposit payouts averages $50,000
One in 10 jurisdictions lack any deposit insurance fund
Speedy on-boarding: the push for faster model approvals
Europe’s banking watchdog is planning to streamline how it authorises credit model updates. Not a moment too soon, say bankers
Two in five central banks see need for more macro-pru tools
Caps on loan-to-value ratios are respondents’ most actively used policy
Czech Republic holds rates again and upgrades growth outlook
CNB says economy running hot on all fronts warrants restrictiveness in monetary stance
AI most widely used for document preparation in financial stability
Smaller financial stability teams less likely to utilise technology
ECB study points out unevenness in EU capital rules
Current prudential framework generates “unwarranted heterogeneity” in banking union, authors argue
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
The Bank of England’s four pillars for a new CCP rule book
Executive director urges feedback on margin transparency, broader collateral and aiding innovation
Financial stability staff sufficiency improves year on year
Most central banks report contentment with non-staff resources
ECB paper finds strong policy can stop expectations de-anchoring
Communicating counterfactual scenarios can help to inform monetary policy decisions
Most central banks co-ordinate monetary and financial stability tools
Cross-scenario evaluation and committee overlap cited as areas of interaction