Banks
CBDC is mixed bag for financial stability – Bank of Korea
Central bank paper highlights stability concerns but says there are instances within which a CBDC could strengthen stability
Interview: Jussi Kangas on the future of cash
Bank of Finland adviser says it’s challenging to keep the cash cycle efficient as usage falls
Russian authorities start criminal investigation of failed bank owner
Private lender Otkritie was nationalised by central bank in 2017
Romanian central bank holds talks with government over tax dispute
National Bank of Romania rejects calls to abolish interbank rate
Lack of diversity signals risks, Irish regulator says
Diversity matters to performance, Rowland says, adding the issue is not restricted to gender
Irish central bank makes lenders pay €647 million over mortgage scandal
Regulator moves on to enforcement actions after securing compensation for 40,000 customers
A dual-currency system would make negative rates work – IMF research
Proposal would free monetary policy from lower zero bound when dealing with a recession
Data overhaul needed to enhance insolvency frameworks – IMF
Paper highlights the importance of data in analysing efficiency of current resolution policies
Governor of the year: Karnit Flug
The Bank of Israel’s first female governor delivered some hard-fought reforms during her time in office, and also stood up to the government and safeguarded macroeconomic stability
Improved political environment lends support to Lebanese pound
As new government is formed, investors become more willing to sell dollars and buy pound
Non-banks continue rise as banks lose market share
Non-bank financial firms hit a record high, at nearly half of global financial assets, FSB finds; leveraged lending increasingly an area of focus
Capital requirements impact collateral demands – BoE paper
Higher capital requirements can make banks demand more collateral, authors find
IMF endorses Hong Kong’s tight macro-prudential measures
But risks to the outlook appear to be building, the fund says
European Commission accuses eight banks of bond market collusion
EC can fine banks 10% of their turnover if it finds “sufficient evidence” of market rigging
Bank of Ghana slashes further 100bp from policy rate
Action follows similar move in 2018, as inflation declines into the target range
Bangladesh Bank eyes national savings imbalances
Growth is high and inflation “contained”, but high-yield products are draining deposits from banks
Spanish governor demands BBVA conduct thorough probe of spy allegations
The bank allegedly hired an ex-police chief in 2004 to spy on government officials and businessmen
Risk manager: Saudi Arabian Monetary Authority
A multi-year overhaul of the Saudi central bank’s risk architecture has come to fruition, resulting in radical changes in behaviour
RBNZ suggests eliminating minimum Tier 2 holding
New Zealand’s central bank proposes dramatically increasing Tier 1 to reduce resolution risk
Payments and market infrastructure development: Reserve Bank of Australia
The RBA has spearheaded the development of an upgraded retail payment system that includes real-time settlement
Currency services: De La Rue
2018 was a busy year for the UK-based banknote provider as it secured new clients and transformed its focus towards technology
Riksbank’s negative rates successfully passed through to economy – research
Findings contrast with recent work by Larry Summers and co-authors
RBI governor: India must ‘brace’ for global turbulence
Shaktikanta Das stresses need to stay firm on banks’ asset quality, despite earlier leniency
Innovation prompts firms to hold more cash – IMF paper
Firms must hold enough liquidity to insure against risky research and development