Financial Stability
Brazil’s central bank shuts down lender connected to Banco Master
BCB says bank had “compromised economic and financial situation”
Basel Committee warns of rollover risks in SRT markets
Investors’ appetite for synthetic risk transfers could lessen during downturns, organisation says
Banks’ internal markets impact wider funding conditions – paper
Repos from affiliates play key role in channelling liquidity to financial system, authors find
Chicago Fed study points to AI tail risk for US banks
Authors warn that a risk event could spill across multiple industries
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
Study calls for twin-pronged macro-pru approach to shocks
Higher capital and CCyB are both needed to mitigate threats to stability, say Bank of Italy authors
This is not quite Japan’s ‘Truss moment’ – ex-BoJ board member
Experts add that central bank is unlikely to have to intervene directly in sovereign bond market
MAS says support for IMF’s anti-poverty work aids stability
Central bank to provide $36.9m to aid fund’s work in Sudan and other underdeveloped countries
EU banks need more control over their data – DNB board member
Chair of supervision says tech, finance and public sector need to work together to reduce dependencies
Most non-centrally cleared repos have zero haircuts, FSB warns
New report provides sweeping view of $16 trillion market and suggests ways to close data gaps
Banks must keep up with high-speed traders – BoE’s Jackson
Risk has migrated to a part of the system where execution is measured in microseconds, official says
AI could amplify financial stability risks – BIS’s Zhang
Technology may increase speed and intensity of how stress propagates through system, says official
Life insurers increasingly exposed to systemic risk – BoE paper
Authors say European firms’ ‘non-traditional activities’ may call for new regulation
Book notes: 1929: the inside story, by Andrew Ross Sorkin
A compelling narrative offering fresh perspectives on the key characters, events and implications of the great crash
Derivatives hedging can weaken effect of capital rules – BIS paper
Banks increase use of credit default swaps when counter-cyclical buffers rise, study finds
Geopolitics a key focus for ECB supervisors – blog
European banks have fared well so far against shocks but must stay vigilant, senior officials write
Fed study sounds alarm over algorithmic rises in credit limits
Researchers say US lenders are extending too much credit to subprime borrowers
Legal threat to Fed accelerates Asean+3 contingency planning
AMRO chief economist says central bank independence of paramount importance for stability
Bailey underscores support for Powell
BoE governor also points to potential spillover risks to UK from events in US
Tech-driven global growth vulnerable to shocks, IMF warns
Sharp market corrections could ensue if productivity gains from AI do not meet expectations