Capital
State-owned banks must support real economy – PBoC official
Deputy governor calls on big lenders to take on greater role amid rumours of capital injection
Basel uniformity fades as members defy dress code
Rule-makers diverge from Basel III standards, denting aims of comparability and fuelling fears over fair competition
CRR III hangs in the balance as member states push for changes
Top EU lawmaker rejects calls to water down capital rules, while others see room for manoeuvre
Fed’s Barr tells regulators to ‘finish the job’ on Basel III
Not complying with global standards makes US banks less competitive, vice-chair for supervision says
Looming US Basel endgame redraft sparks calls to save IRB
Experts say 20 years of data makes credit risk models more appropriate than standardised approach
Trump, the Fed and climate’s undeniable systemic risk
Experts disagree on the impact of the Fed’s withdrawal from the NGFS but are united about climate change’s devastating effect on the financial system
Key lessons from 15 years of macro-prudential policy
Pedro Duarte Neves reviews how macro-prudential tools can be used for maximum effect
FSB: big banks could be sidelined from future rescue deals
Exacerbation of too-big-to-fail means G-Sibs could already be too large to take extra assets
Banks’ leverage ratio ‘over-calibrated’, says Fed’s Bowman
Heavy capital requirements causing illiquidity in Treasury market, governor says
Non-banks and banks are interwoven, says ex-RBI official
Policy-makers should study connections between them when crafting regulations, argues Viral Acharya
Book notes: Central bank capitalism: monetary policy in times of crisis, by Joscha Wullweber
This book asks if independent monetary policy is feasible at a time when central banks prop up the poorly regulated shadow banking sector
China tells insurers and mutual funds to buy more stocks
Regulators, including PBoC, provide new instructions to boost domestic equities market
Basel stops short on wrong-way risk
New guidelines a step in right direction, but experts warn they won’t prevent another Archegos
Rising corporate distress could trigger instability – IMF paper
Study says emerging markets particularly exposed as firms struggle with higher interest rates
Trump 2.0 bank supervision: simpler but no soft touch?
Republican FDIC vice-chair Travis Hill wants more focus on financial risk instead of process
Accounting for banknotes
Three leading experts on central bank finances debate the appropriate treatment of currency
IMF develops stress test for central bank balance sheets
Framework designed to help risk teams determine appropriate profit distributions
Book notes: Default: the landmark court battle over Argentina’s $100 billion debt restructuring, by Gregory Makoff
Required reading amid current high sovereign debt, global tensions and the urgent need for climate finance
CNB’s Aleš Michl on tackling inflation, Friedman’s legacy and ditching DSGE
The Czech governor speaks about policy mistakes, targeting M2, diversifying into equities and gold, building new models and ending interest payments on minimum reserves
ECB raises capital requirements for eurozone banks
Geopolitics and macro-financial shocks remain top priority for next three years, annual review states
Nandalal Weerasinghe on Sri Lanka’s IMF programme, central bank reforms and road to recovery
The Central Bank of Sri Lanka governor speaks about his return from retirement to aid Sri Lanka’s structural reforms and recapitalisation, reinforce central bank independence and develop financial resilience
Pandemic macro-pru in Africa was effective – FSI study
Paper from Basel-based institute says relaxing macro-prudential requirements can boost bank lending
Banknotes: October to December 2024
A round-up of news and salient issues that have affected central bankers in the past three months
BoE stress test highlights liquidity risks in non-banks
“First-of-its-kind” scenario exercise reveals how repo financing could be insufficient during shocks