Leverage ratios
RBI unveils debt restructuring plan
Aim is to save viable businesses while letting hopeless cases fail
BIS paper studies lifecycle of zombie companies
Number of zombie firms has risen substantially, and their future prospects are not good, authors say
Knot warns deviations from global standards must be temporary
“If the US starts distancing itself from international standards, that is quite something,” says Dutch central bank chief
US firms may need big investment cuts - Chicago Fed paper
Cutting investment may be public corporations’ most attractive response to pandemic - researchers
BIS paper flags ‘barren patches’ in post-crisis reforms
Reforms have boosted “shock-absorbing capacity” but some problems persist, authors say
Fed paper examines drivers of US leverage
Economic growth can be major influence even without loose monetary policy, researchers say
Fed eases capital restriction on large US banks
US repo rates stray into negative territory as investors make massive flight to safety
US banks increase discount window borrowing
Federal Reserve “encouraged by the notable increase” in use of the backstop facility
Fed unveils new capital regime to criticism from Brainard
Federal Reserve says new rules will maintain capital levels, but senior official calls them “imprudent”
Stress test capital buffer ‘on track’ for 2020 testing – Powell
Plans were floated nearly 22 months ago, but Fed yet to offer final rule
Fed to stress-test banks’ leveraged loan exposures
Test features leveraged loan shock; scenario includes biggest-ever rise in unemployment
BoE paper finds heterogeneous policy transmission to firms
Authors say financial frictions “crucial” to understanding monetary policy transmission
Basel III changed securities dealing – Bank of Canada paper
Regulations have changed dealers’ behaviour and reduced risk, study finds
Manufacturing leverage weakens ECB monetary policy – BoI paper
Eurozone industrial firms’ response to policy shocks decreases as leverage rises, researchers find
MAS urges vigilance amid rising risks
MAS flags leverage risk in businesses tied to trade and property, as risks to global financial stability rise
Dominican Republic faces monetary policy trade-off – IMF paper
Researchers say financial system is healthy, but central bank faces hard choices over policy
Fed’s policy framework may incentivise reserves hoarding
However, this doesn’t seem to affect bank lending, Fed researchers find
Māori business principles support stability, says RBNZ’s Orr
Collectively-owned businesses are more stable, but many struggle to access capital, governor says
Corporate debt levels would amplify downturn, Brainard warns
CCyB should be used when stability risks are inconsistent with dual mandate, governor says
Fed floats new stress test reforms after industry pressure
Previous proposal drew criticism from major global banks
Market-based metrics are best signal for bank distress – IMF paper
Researcher finds vulnerabilities in large eurozone banks, while North America is least distressed region
Basel Committee overhauls leverage ratio to tackle ‘window dressing’
New disclosure rules aim to end “unacceptable” quarter-end rush to cut leverage
Boston Fed’s Rosengren warns about Japanese banks’ loan holdings
Exposure to CLOs now above Common Equity Tier 1 in one of Japan’s largest banks, data shows
US corporates ‘substantially’ more leveraged than thought – Dallas Fed researchers
Using a broader measure than debt-to-GDP, levels are almost double, they say