Central Banking
Banks’ AI models are flawed – Basel Committee chair
Pablo Hernández de Cos says risk of AI model misspecification is “incredibly high”
Bundesbank partners with MIT on digital euro privacy
EU previously raised concerns about single access point to verify holding limits
Bank of Korea considering forward guidance reform
Governor Rhee Chang-yong sees merit in revealing more information to public
European banks less likely to lend to green firms, says ECB paper
Public guarantee loans can help lower-carbon firms access bank credit, research finds
BoE’s digital securities sandbox to lead to new regulatory regime
Five-year project to open for applications this summer
ECB caps remuneration rates for eurozone government deposits
New rate to also apply to non-monetary policy deposits, as ECB shrinks balance sheet
FSB proposes actions to make margin calls safer
Margin calls can mitigate risk but may also create spikes of liquidity demand, report says
Carstens advances vision for future tokenised financial system
‘Finternet’ proposal envisages payments across linked unified ledgers
Vietnam’s central bank lends $24 billion to troubled bank
State Bank of Vietnam offering liquidity lifeline to lender mired in financial scandal, Reuters reports
Fed policy-makers disagree over risks
Williams and Goolsbee say policy is restrictive but Logan takes different view
High interest puts pressure on US cattle farms – research
Wildfires and rising input prices are exacerbating factors, Kansas City Fed research says
‘Stretched’ bond markets vulnerable to instability – IMF
Expectations of soft landing have compressed spreads and could lead to sudden repricing, report says
Central banks need caution in easing policy, IMF says
World Economic Outlook says most indicators still point to soft landing
Bank of Israel to launch CBDC sandbox
Central bank will invite banks and fintechs to experiment with API, deputy governor says
CBDCs could increase financial instability, Fed paper says
Central banks should consider price and quantity tools to mitigate risks, researchers say
Maximising the impact of banknote communications
Antti Heinonen highlights the ongoing evolution in how central banks talk about their banknotes
Pakistan repays bonds worth $1bn as it seeks fresh IMF loan
Debt-stricken country looks to secure about $6 billion in loans
IMF appoints Georgieva for a second term
Unilateral decision comes three years after “Doing Business” controversy
Stablecoin rules are ‘diverse and fragmented’, FSI paper warns
BIS institute says it is “critical to align national regulatory frameworks”
Switzerland proposes new rules to close Sib oversight gap
Public backstop to become permanent, SNB to provide more liquidity
PBoC withdraws liquidity and holds key rate
Policy-makers refrain from easing despite weak inflation and exports data
Taking stock of Bernanke: the original sin of forecasting
Jagjit Chadha says the Bernanke review of forecasting should be the start of a more profound discussion at the Bank of England
Reserve managers brace for war
Geopolitical escalation could trigger inflationary and energy shocks, RMT survey finds
Peru’s board cuts interest rates by 25 basis points
Central bank says inflation should continue falling towards centre of target range