Capital
Lagarde revives pitch for euro’s international role
Single currency can become ‘true source of strength’, ECB president says
Interest rate risk rules need more work, says Fed’s Barr
Former vice-chair for supervision also says his redraft of Basel III would have softened NMRFs
DFAST monoculture is its own test
Drop in frequency and scope of stress test disclosures makes it hard to monitor bank mimicry of Fed models
Book notes: Bankers’ trust, by Aditi Sahasrabuddhe
A novel investigation into how trust among central bankers – or lack thereof – helped and worsened crises of the past
Esma needs dose of BoE agility, says official
Clearing house supervisor Giusto points to central bank's consultation on Emir as example of nimbler approach
NBER paper emphasises role of accounting in bank regulation
Bookkeeping conventions matter to how effective capital and liquidity rules are, authors write
RBA’s Hauser expects ‘significant’ rise in pension funds’ FX hedging
Deputy governor expects Australian dollar’s “natural hedge” to remain but be less relevant to funds
Options for realising gold revaluations
Is monetary gold a special case in central bank revaluations accounting?
ECB working to simplify banks’ annual health checks – Donnery
Srep will become more tailored to lenders, says supervisory board member
Investors pledge $510m to Singapore’s green investment fund
Central bank says venture will finance sustainable infrastructure across Asia
BoE economists outline model of liquidity-solvency spirals
Model aims to test banks against the sort of interactions that led to collapse of SVB and Credit Suisse
How to solve the Fed’s $300bn FRTB problem
A sacrifice will have to be made to ensure new market risk rules meet demands for capital neutrality
Financial Stability Benchmarks 2025 report – the threat from tariffs
Benchmarks highlight how many central banks see tariffs as a high risk to financial stability
RBNZ proposes lower capital requirements for lenders
Key proposal would reduce minimum capital requirement to encourage new entrants
Neutral counter-cyclical capital buffer averages less than 1%
But average neutral level of CCyB varies by economic groupings
Uncertainty necessitates strong capital buffers – ECB
Central bank calls for increased attention to macro-pru and monetary policy complementarity
Fed’s new leverage ratio: the horse that never left the gate
Most of the biggest dealers aren’t leverage constrained now, and experts are sceptical that banks will use the extra capacity for Treasuries
Climate risks still on the fringe of monetary policy in Asia
Notwithstanding efforts by the PBoC and BoJ, there is still a need to observe persistent and measurable impacts on inflation and output before climate change truly influences interest rate policy, argues Sayuri Shirai
Warren’s buffer plea is point-scoring, says expert
Professor attacks senator’s call for Fed to tighten bank regs, but echoes concerns about weak lenders
Speedy on-boarding: the push for faster model approvals
Europe’s banking watchdog is planning to streamline how it authorises credit model updates. Not a moment too soon, say bankers
Book notes: How low interest rates change the world, by Jesper Rangvid
This book investigates the possible causes of ultra-low interest rates, the problems low rates cause and the path of future rates
Only 5% of central banks reveal individual bank stress-test results
Respondents share details of how stress scenarios are developed
ECB study points out unevenness in EU capital rules
Current prudential framework generates “unwarranted heterogeneity” in banking union, authors argue
The Bank of England’s four pillars for a new CCP rule book
Executive director urges feedback on margin transparency, broader collateral and aiding innovation