Banks
Reflections on the international financial situation
Former IMF head Jacques de Larosière writes that markets are blind to Trump's policy shocks that are fragmenting the monetary ‘system’, causing strain in the eurozone and may result in stagflation
Iran and Oman to establish ‘joint bank’
Central bank says new institution will help with financial settlement
Fed agrees to unveil stress test models in transparency U-turn
US regulator commits to September 30 deadline for new measures
Banks should better balance liquidity among themselves – Riksbank
US fiscal position also places “serious questions” over dollar’s role as reserve currency, bank says
BIS’s Restoy sees scope for improvement in EU regulations
FSI chair backs review of whether current framework imposes excessive compliance costs on banks
Bank Indonesia to inject $4.8bn into country’s economy
Cut to liquidity buffer amid slowing growth aims to give banks greater flexibility in managing funds
Leverage ratio reform: the good, the bad and the Treasury
A simple cut would be less likely to stoke interest rate risk than exempting US government bonds
Why US banks are not taking their eye off reputational risk
The concept may be removed from supervisory exams, but the 2023 crisis showed the risk is real
Book notes: The political economy of central banking, by Alessandro Roselli
Roselli’s book offers a comprehensive history of the relationship between governments and central banks
Sarb official warns of risk in RSA sovereign bond holdings
Banks must consider interest rate risk when buying South African government debt, head of stability says
Mr Bessent goes to Basel: the fate of global bank regulation
US resistance to international standards could spark greater fragmentation of prudential rules
Climate stress tests should involve industry – BdF official
Bottom-up approach enables banks and insurers to capture environmental risks, says Laurent Clerc
Banks should ‘regularly’ assess clients’ exposure to tariffs – ECB
Rising trade tensions threaten financial stability, bank’s economists say
Riksbank: everyone should be able to pay in cash
Bank welcomes government report calling for payments in physical currency to be facilitated
Fed’s SLR reform must address interest rate risks – experts
Planned change receives support from some, but others warn of slippery slope to excessive deregulation
Ukraine’s Andriy Pyshnyy on the US minerals deal, ongoing reforms and post-war plans
The National Bank of Ukraine’s governor speaks about managing inflation, financial sector reform, FX reserves, international aid and actions in the event of a peace deal
Lenders to export-oriented firms may face losses – Danish governor
Nødgaard also recommends that banks improve their cyber defence plans
Fed official: SLR tweaks likely unbundled from Basel III
Complexity of endgame proposals means any leverage ratio changes will probably be proposed separately
German and Spanish governors criticise US policies
Nagel defends Fed independence, while Escrivá cautions against excessive deregulation
Fed researchers call for new definition of ‘unbanked’
Economists support paper’s more nuanced approach, but caution against dropping current terminology
BoE to consult on promoting clearing for gilt repo market
Deputy governor also takes aim at bilateral repo haircuts and cross-CCP netting
Book notes: Smart money: how digital currencies will win the new Cold War, by Brunello Rosa with Casey Larsen
This alarmist book, although lacking nuance, provides a lucid account of how CBDCs could play a decisive role in geopolitical dominance
Time to worry about Japanese debt?
The transition to positive rates means Japan may need to re-examine its huge public debt burden, argues Sayuri Shirai
US Basel equivalence questioned as EU patience wears thin
MEPs say unfaithful US implementation of Basel III could trigger review of access to EU markets