Benchmarking
‘Say what?’ Trust in central bank communications
Central banks are changing how they communicate with different audiences, but judging the success of these communication efforts is difficult
Currency managers fighting counterfeits with new security features
Availability of sophisticated printers see counterfeits continue to rise
Financial Stability Benchmarks 2021 report – executive summary
Findings on financial crime, banking stability, macro-prudential tools, decision-making and future risks
Reserve Benchmarks 2021 report – in search of liquidity
Insights on portfolio management during the Covid-19 shock, staff and technology adaptation during the crisis, and the rise of green bonds as a reserve asset
Central banks sign up to Fed’s Fima facility
Reported usage is marginal, but backstop is highly valued by reserve managers
Custodian use in upper-middle income economies declines
Unstable jurisdictions, such as Afghanistan or Venezuela, face risk of losing access to assets held abroad
Bespoke indexes often used with derivatives and securities
Central banks using bespoke indexes are more likely to lend securities
Central bank communications ‘after’ Covid
From crisis responses to coping with sudden digitisation, Covid-19 forced central bank comms teams to innovate fast. How much of it will stick?
Europe leads on gold lending and swaps
Just over 20% of central banks engage in these operations
Technology reserve staff levels hold during pandemic
Remote work posed an operational challenge
Investment committees play dual reserve benchmark roles
Final decision made by committees at half of responding central banks
Reserve coverage remains at adequate levels despite Covid
FX interventions to tackle capital outflows have not meaningfully reduced portfolios globally
Central banks divided on liquidity stress tests
Central banks with lower reserves more likely to forgo the measure
One in ten central banks opened new liquidity swap lines
Benchmarking participants expanded lines in dollars, euro and renminbi
Securities lending prevalent in European central banks
Monetary policy, market maturity and currency variation may limit adoption in other regions
National income not only determinant of reserve management staff numbers
Salaries ranged between $11,968–$138,768 among benchmark participants
Payments Benchmarks 2021 – presentation
Central Banking’s payments subject matter specialist Rachael King speaks with Christopher Jeffery about payments, staffing and salaries, mandates, oversight, and RTGS renewal
Most central banks invest in derivatives
External managers facilitate wider use of these instruments
External asset manager use on the rise
Central banks in upper-middle income countries allocated a higher share of reserves to external managers
Emerging nations turned to FX interventions during pandemic
Central banks in emerging nations were twice as likely to implement FX interventions than their peers in advanced economies
Reserve managers prioritise liquidity tranches during pandemic
Central banks increased this part of their portfolios in the wake of US Treasury disruptions
Social bonds gain importance as a reserve asset
More than two-fifths of benchmark respondents invest in social bonds
Climate risk becomes more relevant to reserve managers
More central banks invest in green bonds and include climate risks in their benchmarks
Financial Stability Benchmarks 2021 report – keeping the sector secure
Benchmark exercise presents responses on AML/CFT, cyber, macro-prudential and other risks