Banks
Fintech experts recruited for New York Fed advisory group
New group will provide gateway for Fed to interact with tech industry leaders
CBDC may see central banks adopt retail lending role – BIS’s Carstens
Two-tier banking system could be turned on its head by CBDC, but BIS will “flash warning light” if central banks fail to appropriately consider stability, Carstens says
Carney says supervisors must develop climate stress-testing
BoE is working with the NGFS to develop climate change scenarios as step toward stress-testing
Book notes: Floored!, by George Selgin
Michael Reddell remains unconvinced the Fed’s introduction of the IOR prolonged the recession, but credits Selgin’s argument the IOR policy made the central bank a more powerful credit lender
UK and EU agree template for no-deal Brexit supervision
Template sets out basis for supervision rules under no-deal Brexit, with deadline little more than a week away
Bank capital ratios fall for first time since 2011
Basel monitoring report finds declines in both risk-weighted capital and leverage ratios
‘Clock ticking’ for Australian institutions exposed to Libor – RBA’s Kent
Deputy governor warns current fallback measures may not be enough to mitigate transition disruption
RBI stands firm on stressed assets as Supreme Court deliberates
Central bank says it has not softened stance, but court could force it to grant forbearance
PBoC to develop new fintech regulation
Central bank will implement new roadmap in 2019, which will see improved regulatory mechanism
Regulators might not allow cash to circulate were it invented today – panellists
Anonymity of cash poses risks for the financial system, some central bankers say
Book notes: Finance and philosophy, by Alex J Pollock
A readable and useful book that provides much food for thought, and should be read widely by economists and policy-makers
Supervisory compliance weaker on 55% of Basel III principles – IMF
FSAP reports uncover potentially worrying trend on financial supervision since mid-2013
Basel Committee clarifies ‘expectations’ on crypto
Banks must meet certain minimum standards if they want to trade crypto assets; more details on prudential expectations to follow
NY Fed activates motion to dismiss TNB’s lawsuit
“The relief TNB seeks is wholly incompatible with the public interest” – New York Fed
Romanian central bank warns on tax as dispute worsens
New team must be installed to lead central bank, says prime minister’s adviser
Fed IOER amendment aimed at ‘thwarting’ The Narrow Bank
The move appears to specifically target The Narrow Bank’s business model, the firm says
Europe’s ‘zombie lending’ harmed recovery – BoE paper
Forbearance appears to harm output, investment and total factor productivity, paper finds
Draghi unveils new bank funding as ECB forecasts slower growth
Forward guidance extended and third round of TLTROs introduced as Draghi warns of uncertainty
Riksbank to reduce reserves and toughen ELA regime
Gold and foreign exchange assets will decline from $56 billion to $48 billion by October 2019
Weak pass-through may shield UK from sudden rate rise – BoE’s Saunders
Central banks may start to lose control of policy transmission even above lower bound, says MPC member
ECB warns draft Greek law could damage banks
Key details of measure are unclear but could be damaging, says ECB
UK’s FCA unveils ‘near-final’ plan to cope with hard Brexit
EBA calls for further action on deposit insurance as the FCA aims to ensure regulations will still function
Regulators must not be too strict in a crisis – BIS paper
Cyclical capital requirements should account for downturns as well, author argues
Foreign banks expect Fed proposal imminently
New framework for tiering foreign bank requirements could come as early as this week