Banks
BIS research finds 20% drop in active correspondent banks
Retreat from correspondent banking could drive people into “unregulated channels”, authors warn
G7 leaders avoid committing to co-ordinated virus response
Central bankers and finance ministers “stand ready”; Carney says BoE has launched contingency measures
Knot warns of drawbacks of negative rates
Consumers are increasing their savings rather than their consumption
Chinese banks probably concealing NPLs – Finnish paper
“Hidden NPLs” particularly common in large and well-capitalised banks, researcher argues
Cunliffe spells out key questions to answer before launching CBDC
If central banks are to issue digital currency, they must think hard about the design, BoE deputy says
Ghana’s Addison on banking reform, innovation and the future of the eco
The Bank of Ghana governor speaks about the next steps in banking reform and why West Africa may need more time to start using a common currency
Policy responses to Covid-19
The coronavirus outbreak poses a real threat to the global economy, writes Sayuri Shirai
Do low rates spur investment?
Many believe low interest rates spur investment, but there appears to be little hard evidence to support such claims, writes former IMF head Jacques de Larosière
New body will share EU intelligence on cyber-threats
ECB, Europol and the EU Agency for Cybersecurity join forum to share cyber security information
Activist claims Bailey ‘not fit’ to govern BoE
High-profile activist criticises Bailey and FCA in new report, calling for investigation into his appointment
Cost of AML/CFT regulation could spell trouble for Barbados
Central bank governor urges financial firms to take risk-based approach to prevent excessive de-risking
Why Bulgaria needs to deepen its currency board
The BNB’s currency board rules should be extended to transaction deposits at commercial banks, which could in turn issue digital currencies, even in the event of euro adoption
IMF chief warns of ‘dire’ coronavirus scenarios
Virus has already impacted global growth but effect could worsen if containment fails
ECB paper presents new model for ‘fire sale’ contagion
Agent-based model shows asset managers spreading contagion during larger liquidity shocks
Weak eurozone banks hindered monetary policy – Bundesbank paper
“High-risk” banks failed to increase loan spreads despite ECB liquidity injection, researchers say
Bank of Russia to sell controlling stake in country’s biggest lender
Central bank will sell stake in Sberbank to finance ministry and is likely to pass most profits to state
Stability versus solvency
There is still far too much regulatory forbearance on troubled bank debt. More on-site inspections and genuine writedowns are needed to fix the banking system
BoE’s Taylor argues for solution to IFRS 9 ‘headache’
Loss provisioning rules could worsen downturns and present issues for stress-testing, official says
Climate-related disclosures should be mandatory – RBNZ official
Assistant governor says firms should not be allowed to “cherry pick” what disclosures they make
Chinese banks set for mass loan repricing
PBoC set to launch new options to help markets manage interest rate risk
Fed could postpone stress buffer beyond CCAR – experts
Delays prompt speculation that the new rules will only be known after the stress-test results in June
Coronavirus contagion risk prompts central bank action
Asian central banks deploy contingency plans and tell banks to minimise risk of virus spread
BoE paper highlights non-linearities in bank funding and solvency
Results could be important consideration in stress-test design, authors say
MAS to allow financial data transfer to US
Data-sharing agreement could see personal data shared across borders, as data localisation inhibits supervisory processes