Financial crisis
Single and dual mandates often result in same policy – Schnabel
AI productivity boom yet to show up in eurozone data, ECB board member adds
Repeat of past mistakes fuels risk of new crisis
Jesper Berg and Hans Geeroms argue that bank lobbying has succeeded in securing a dangerous softening of rules
Full ‘postmortem’ on QE yet to be written – Klaas Knot
Former DNB governor expects Fed to continue international monetary diplomacy under Warsh
US stock crash would be ‘felt across the world’ – BdF deputy
Current account imbalances cannot be solved unilaterally, argues Bénassy-Quéré
Life insurers increasingly exposed to systemic risk – BoE paper
Authors say European firms’ ‘non-traditional activities’ may call for new regulation
China could trigger Treasuries selloff to punish US – paper
Beijing might sustain short-term self-harm to undermine US assets’ safe haven reputation, authors say
Collateral velocity is disappearing behind a digital curtain
Dealers may welcome digital-era rewiring to free up collateral movement, but tokenisation will obscure metrics
Bowman’s Fed may limp on by after cuts
New vice-chair seeks efficiency, but staff clear-out could hamper functions, say former regulators
Book notes: Money in crisis, by Ignazio Angeloni and Daniel Gros
This book should be essential reading for policy-makers at a time of uncertainty and technological change
Eurozone bank uncompetitiveness a ‘myth’ – Schnabel
Regulations have made lenders better, says ECB board member
BIS points to ‘structural transformations’ in markets
Quarterly review cites higher volatility and gold losing its status as a safe haven asset
US banks hoping for end of DFAST global market shock
As Fed consults on stress-test reform, lobby group argues regulator is double-counting market risk
BIS paper proposes simpler Basel capital framework
Authors say ‘capital stack’ is too complex and does not provide enough resilience to some shocks
‘Imaginations are running wild’ – Nagel on AI
Europe is prepared for a financial downturn, Bundesbank president says
Stress-test transparency: how much is too much?
The transparency drive to disclose bank stress-test results comes with costs
Working group minutes: central banks face balance sheet challenges
Some institutions are struggling to absorb large amounts of excess liquidity
Former Kansas City Fed chief sounds alarm over banks’ leverage
Hoenig says largest lenders are not adequately capitalised for their risks
IMF to provide Sri Lanka with additional $347m in financing
Mission chief says central bank should continue to be independent and build reserves
Interest rate risk rules need more work, says Fed’s Barr
Former vice-chair for supervision also says his redraft of Basel III would have softened NMRFs
News coverage drove 2023 US bank runs – NY Fed study
Equity investors only became attuned to lenders’ weak fundamentals after mass panic began
DFAST monoculture is its own test
Drop in frequency and scope of stress test disclosures makes it hard to monitor bank mimicry of Fed models