International
BIS bulletin weighs pros and cons of ‘front-loaded’ tightening
Recent rate increases are highly synchronised and twice as fast as previous cycles, authors say
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…
BIS paper finds ‘mixed’ evidence of non-banks triggering spillovers
“Extreme” capital flows have not worsened, but central banks are also more active, authors note
Malpass says debt relief critical for poor countries
World Bank president says world risks “disorderly default process”
BIS analysis finds ‘huge’ debts hidden in FX derivatives
Economists say banks and non-banks have major exposures hidden off balance sheet
Armenia’s Galstyan calls for a new framework to tackle uncertainty and nonlinearities
Central Bank of Armenia governor says central banks can start to regain credibility by admitting their mistakes. This could include employing a risk-management approach to monetary policy aimed at avoiding nonlinear ‘dark corners’ and placing much less…
BIS data shows ‘surge’ in OTC derivatives market value
Near 50% increase in space of six months reflects “elevated uncertainty”, BIS says
CPMI and Iosco raise ‘serious’ concern over cyber security flaw
Global bodies say several FMIs have vulnerabilities in their cyber security
Rates round-up: Pakistan adds 100bp to main rate
Central banks raise rates in Kenya, Congo and Iceland
Book notes: Zero interest rate policy and the new abnormal, by Michael Beenstock
Author's contention that asset purchases caused the low neutral rate of interest is entertaining and infuriating in equal measure
BIS paper finds reserves scarcity even during QE era
Banks still relied heavily on incoming payments to replenish funds, researchers find
Currency Benchmarks 2022 report – executive summary
Cash far from extinct and volumes continue to grow in many places
FSB calculates G-Sib list with revised methodology
Some global banks change “bucket” under first use of Basel Committee’s revised method
Costa Rica receives first loan under IMF’s green programme
Country is “excellent candidate” for Resilience and Sustainability Facility, says IMF official
Currency Benchmarks 2022 report – a slow evolution continues
Cash usage persists, polymer makes advances and volumes are expected to rise
Climate analysis likely understates risk, say FSB and NGFS
Study finds scenario analysis struggles to capture more complicated dynamics
BIS publishes database on bitcoin adopters
Evidence suggests speculation is key motive for holding bitcoin, rather than distrust of traditional institutions
The long road to 24-hour RTGSs
Extended hours would help international payments but some central banks challenge the business case
Non-banks in focus as G20 leaders meet in Bali
FSB calls for action on liquidity mismatches and “hidden leverage”
Central bank assets enjoy ‘99%’ immunity
Why central bank assets possess legal immunity – but not from sanctions
Central banks’ gold demand hits record level
Purchases in 2022 reach 673 tonnes, higher than in any full year since 1967
Book notes: Yellen, by Jon Hilsenrath
This book offers new insights into the tough decisions and tremendous efforts Yellen has made as a pre-eminent economic policy-maker
Central banks have fewer cash distribution centres on average
However, some have added processing facilities in last five years
Reshuffle heralds new era of Chinese central banking
Policy room for the next PBoC governor looks limited, as loyalists win out over technocrats for top economic posts