Central Banking
Covid-19: a watershed moment for China’s BRI?
China faces a delicate balancing act when it comes to forgiving and restructuring Belt and Road Initiative debt while preserving the soundness of its financial institutions
LTV ratios need reform, ECB paper argues
Macro-prudential tools must now apply to real estate funds financed by non-bank loans – researcher
Fed picks G+D to develop ‘next-generation’ currency processing
German firm developed new prototype for the Fed to maximise speed and accuracy
Bundesbank paper examines stress-test models
Authors present a method to investigate how well stress tests predict bank failures
New York Fed paper examines MBS price dislocations in March
Flight to safety and dealer balance sheet constraints widened cash-forward basis, researchers find
New Fed discount window could ease bankruptcy crisis – researchers
Many companies may not endure a further liquidity shock
RBNZ boosts asset purchases and prepares new policies
Negative rates and funding for lending programme under “active preparation”
Lebanon aid depends on reform – IMF
Georgieva sets banking bail-in and further audit of central bank as conditions for emergency aid
Improvements in US consumer expectations halt in July
Households more pessimistic as Covid-19 continues to spread, New York Fed survey reveals
IMF urges broad shake-up of US financial stability framework
Rapidly changing financial landscape poses challenges for the complex oversight framework, IMF says
Taiwan central bank open to more onshore insurer FX hedging
Central bank suggests lifers can use onshore swaps to hedge dividends, but some warn it could hit NDF market
Fed rejects bank appeals against stress-test results
Goldman Sachs remains in top spot for overall requirement, as Fed reveals stress capital buffers
BoE paper outlines ‘capital flows-at-risk’ framework
Methodology allows researchers to explore full distribution of “push” and “pull” effects on capital flows
Fed paper: market power can cause inequality and instability
Market power can explain a lot of recent undesirable “secular trends”, authors say; redistribution could have macro-prudential benefits
More changes at top of NBU as donors watch closely
Council approves new deputy governor as NBU confirms strategy director has left
Lithuanian central bank welcomes anti-money laundering centre
Inter-agency centre will involve finance ministry, tax authority, banks and law enforcement
Norges Bank stands by Tangen amid fresh criticism
Head of supervisory board says central bank broke rules in appointing Nikolai Tangen
Emerging markets face L-shaped recession – paper
Researcher works back from growth forecasts to see how Covid shocks might play out
Former RBI deputy attacks government over fiscal dominance
Recent actions by Indian government are “tantamount to coercive monetisation”, says Viral Acharya
PBoC official joins policy lender after clearing up Baoshang Bank
Zhou Xuedong joins China’s biggest policy lender, as PBoC declares Baoshang Bank bankrupt
US unemployment falls to 10.2%
Miscalculation errors continue to understate headline figures, Peterson Institute research finds
Lebanese central bank orders interest-free loans after explosion
Move comes despite banking sector lacking dollars and reports of massive capital shortfalls
Emerging markets face ‘uphill battle’ against pandemic – IMF staff
EME countries face limited fiscal space and possible solvency crisis, warn researchers
Bank of Japan intensifies CBDC research
Central bank appoints new CBDC head as ruling party warns Chinese effort poses security threat