United Kingdom
BoE may diverge from EU on software as capital
PRA opens consultation after Bailey says there is no evidence software assets should count as capital
Shadow banks play key role in business cycle – BoE paper
Contraction in securitisation can spill into wider credit conditions, researchers say
Paper finds little evidence of long-term scarring
Richmond Fed research finds short-term demand shocks rarely create hysteresis
Fed’s 2021 stress test includes major asset price shock
CCAR will evaluate 19 largest banks; scenario includes 55% fall in equity prices
Covid-19 has weakened UK households’ finances – FCA survey
Over 13 million adults will ‘struggle to make ends meet’, new survey says
Book notes: The political economy of the special relationship, by Jeremy Green
Unsatisfactory story about the decline and resurgence of the UK’s importance in the global financial system
People: BoE’s executive director to leave
Alex Brazier to leave BoE in September; ECB looks for senior climate official
Andrew Bailey attacks European Union over regulations
EU risks regional dispute as it holds UK to standard applied to ‘no other country’ – BoE governor
Judge questions Bailey’s account of LCF investigation
Elizabeth Gloster rejects BoE governor’s claim of a “misunderstanding” over his role
Bailey hits back at critics in new hearing on LCF scandal
“I am quite angry”, says BoE governor, as he denies accusation of cover-up
UK’s New Payment Architecture brings ‘unacceptably high risks’ – regulator
Payments regulator warns new platform may be too costly and could quash competition
Bailey defends BoE’s independence
Claims that buying government debt threatens independence are “entirely without merit”, governor says
BoE tells firms to prepare for negative rates
Preparation is not a signal that negative policy rates will be adopted, Bailey stresses
BoE paper seeks origin of systemic risk
Network analysis tool can overcome problems with other approaches, authors say
FCA urges UK banks to postpone branch closures
Closures during pandemic could have “significant consequences” for consumers, FCA warns
Central clearing proved resilient in ‘dash for cash’ – BoE’s Segal-Knowles
Challenge now is to “sustain and strengthen” the system, says executive director
BoE paper explores macroeconomic impact of macro-pru
Authors build DSGE model featuring “detailed banking sector” and sticky interest rates
BoE scolded for carbon-heavy investments
Parliamentary committee says current bond buying undermines “diplomatic leadership” on climate change
BoE adjusts stress-testing framework
Tests this year will be based on 2020’s reverse stress test, as banks face “ongoing operational challenges”
People: Philippines governor recovering after medical procedure
Benjamin Diokno steps back from duties temporarily, plus appointments in UK, Singapore and more
FCA clamps down on consumer protection breaches
Nearly 10% of firms see application for consumer investments blocked, data reveals
FCA court victory gives clarity to SMEs over Covid disruption
Court ruling will see a larger number of businesses receive payouts from their insurers
Debt-service ratio limits have greatest welfare benefit – BoE research
Authors find macro-prudential tools can also boost the transmission of monetary policy
BoE must improve understanding of QE – report
Lack of understanding has prevented BoE’s ability to build public trust in new policy tool, report says