Capital
Basel Committee to consult on stablecoin capital requirements
Feedback also sought on interest rate risks and G-Sib “window dressing”
RBI replaces bank’s management over governance concerns
Supervisors intervene over “poor governance standards” but allow lender to continue operating
The ECCB’s Timothy Antoine on currency union, cooperation and DCash 2.0
The ECCB governor speaks with Christopher Jeffery about maintaining a currency zone, addressing climate and cyber risks, the decline in correspondence banking and lessons learned from issuing a retail CBDC
Defending the basis
Benefits of additional Treasury liquidity may outweigh potential intervention costs during a hypothetical panic, writes Joseph Wang
Lagarde calls for stronger EU securities and markets authority
ECB president stresses completing capital markets union is essential to deal with deglobalization, ageing and climate change
Singapore and Ghana aim to improve MSME finance
Project aims to create “universal trusted credentials” to assess smaller firms’ creditworthiness
IMF proposes 50% increase in quotas but no voting reform
Proposal likely to be acceptable to US but would not boost emerging markets’ representation
DRC says central bank needs recapitalisation
Government says BCC has no real equity as war and elections add to economic crisis
Book notes: The economic government of the world 1933–2023, by Martin Daunton
A deep dive into the politics, personalities, trade theory and trade practice of the era, but missing a crucial element: the collapse in the US stock of money
The predicament of bloated central bank balance sheets
Swollen balance sheets carry significant risks for combating inflation, ensuring financial stability and preserving central bank credibility, independence and effectiveness. How can central banks reduce them?
Corporate pandemic cash buffer is running low, finds research
The impact of monetary policy could grow as companies’ cash dwindles, Boston Fed paper says
Public trust: the role of the private sector in exploring digital currency
Digital currencies that effectively protect financial privacy in lawful transactions will garner enduring confidence in the highly integrated networks of the future, argue J Christopher Giancarlo and Daniel Gorfine
Philippines’ Marcos pledges SWF will still go ahead
Government puts implementation rules on hold, but president says it will open by year’s end
Book notes: Economists in the cold war, by Alan Bollard
A geographically balanced review of key economists that shaped the world economy
Somalia’s Abdullahi on the challenges of re-integration with the international system
The Central Bank of Somalia governor speaks about capacity building, reintroducing the shilling, securing donor support and climate change
Basel III implementation is behind deadline, says committee
Only a third of member jurisdictions have adopted standards
Basel III capital shortfall narrows but liquidity ratios fall
Average capital ratios returned to pre-pandemic level in December 2022, Basel Committee says
Stress-testing the banking system: what lies ahead?
Pedro Duarte Neves says stress tests must evolve to capture systemic, liquidity and cyber risks
‘Illiquid lemon markets’ can worsen crises – NBER paper
Authors extend George Akerlof’s Nobel prize-winning work to the macroeconomy
BIS paper says reform to AT1 instruments ‘may be necessary’
Actual use of contingent bonds may clash with their original purpose, authors say
G20 promises greater funding for World Bank
US-led effort could unlock $200 billion of funding capacity, if countries follow through on pledges
Financial regulators: one, two, maybe a few?
As Jamaica moves to introduce the ‘twin peaks’ approach to financial oversight, Ben Margulies assesses some of the pros and cons
Fed proposes long-term debt requirement for large banks
Governors Waller and Bowman express concern the rule doesn’t appropriately tailor regulation
ECB: from a supply to a demand-driven floor?
Eurozone’s central bank expected formally to abandon corridor in forthcoming operational framework review