Banks
ECB paper examines banks’ responses to unconventional policy
Weaker banks’ sheets reduce credit supply in response to conventional policy shocks, paper finds
Carney calls for financial sector to face up to climate risks
Outlook is “concerning” as losses from extreme weather hit record levels, BoE governor says
Mozambique’s payment system provider cuts off service
BizFirst says it has not been paid by the banks or the country’s central bank for use of its software
Bank of Canada to weigh up alternatives to inflation targeting
Central bank will hold “full horse race” between nominal GDP targeting and other alternatives, Wilkins says
RBI standoff ends in compromise after marathon meeting
Nine-hour meeting ends in agreement, but government extracts concessions on key issues
Report highlights cyber vulnerabilities in securities market
Structure of the market and number of participants makes sector increasingly difficult to safeguard
Deposit insurance coverage up ‘substantially’ – IADI survey
Basel-based group finds deposit insurance is widespread and increasingly generous to depositors
Lagarde urges central banks to consider CBDCs
IMF chief sees obvious benefits to central bank digital currencies, but design is crucial
Balance sheet adjustments needed to combat climate change, says Finland’s Rehn
Finnish governor urges central banks to do more around the issue, including gathering more data to better forecast risk
Central bank collaboration on CBDC warranted, says Bank of Israel official
Report rules out CBDC in Israel for now, but central bank will be watching Sveriges Riksbank closely as it launches prototype
China’s rebalancing on hold as growth falters – IMF paper
Rebalancing is expected to continue in 2019, but income inequality and leverage could prove an issue
Household debt is main risk for New Zealand – RBNZ’s Bascand
Deputy also notes country is more reliant than most on overseas funding
Bahamas central bank draws up crypto asset regulations
Strict new guidelines will be applied to banks for customers wishing to trade and hold new instrument
Sarb reprimands HSBC for AML deficiencies
Central bank fines commercial lender over $1 million after weaknesses in AML detection and reporting were discovered
EU offers Iran sanctions relief with new clearing house
Iran retains access to Swift network despite US sanctions, but new clearing house could provide permanent loophole
Basel rules force small countries to face irrelevant risks – Bahamas governor
Stress-testing parameters irrelevant for many small jurisdictions, Rolle says
Lagarde calls for an end to trade tensions
IMF chief says countries should ‘fix’ global trade system, not ‘destroy’ it
Rwanda concerned by high NPL levels despite improvement
Central bank records 6.5% decrease in NPL levels but ratio remains above the 5% benchmark
Chinese banks fail tests as PBoC warns of ‘grey rhino’ risks
Half of banks failed the most severe stress tests; central bank says transition to new economy might unleash unexpected risks
US banks’ strategic similarities pose risks – NY Fed official
“Supervisors should be dynamic and continue to evolve as the supervised firms do,” Kevin Stiroh says
West African single currency plans move towards lift-off
Ecowas community launches competition for design of new currency aimed at strengthening trade and growth within the region
Review into New Zealand bank conduct reveals failings
New Zealand’s central bank urges government to provide regulators with sufficient powers to address conduct, as significant weaknesses appear in the sector
The EU tries to rethink its faltering AML regime
The European Union plans to centralise its anti-money laundering efforts following a series of scandals this year. Dan Hardie looks at the options available and the multitude of challenges that remain
Fed proposes lightening regulations for large banks
Lael Brainard objects to plans, warning they could leave taxpayers “on the hook”