Credit conditions
Lenders use strict covenants to hedge against rate hikes – study
US banks exposed to policy volatility use breaches to cut lending in tightening cycles, authors say
Asean+3 central banks have space to buffer shocks – Amro report
Study says institutions are capable of more accommodative policy, should external circumstances demand it
Russia cuts rates by 200bp, citing moderation in inflation
Experts say central bank waited until expectations had moderated and cut may support country’s lenders
Floating-rate credit blunts policy transmission – research
Inflation would have reached target sooner if more firms had borrowed at fixed rates, study finds
ECB intervention stabilised debt market during Covid – research
Study by bank’s economists says firms found it harder to issue commercial paper later on
Bank lending in Ukraine continues to grow, despite conflict
NBU survey reports demand from businesses and households is up, though loan quality may be slipping
Default levels do not explain high US credit card rates – study
NY Fed paper shows levels of interest charged far exceed those for other loans
NY Fed credit survey shows consumers are strapped
Study finds more people are having applications rejected and expect loans to be harder to secure
Credit delinquency rise may be due to home priorities – study
Consumers choosing to repay auto and home loans rather than credit cards, say authors
Philadelphia Fed documents troubling credit trends in US
Revolving credit and delinquencies on rise as minimum payments hit peak for the decade
Forbearance does not always lead to ‘zombification’ – BoE paper
Well-designed policies can support firms through temporary periods of stress, researchers find
US consumers are increasingly denied credit – NY Fed survey
Rejections for auto loans and remortgages have reached record levels
Trade credit can expose firms to FX risk – BIS paper
Currency borrowers partially insulate their partners from shocks, but still pass them along supply chains
Eurozone policy transmission ‘more pronounced’ in 2022–23 – study
Banks’ increased risk perceptions underpinned swifter pass-through, says Bank of Italy research
Central Bank of Kenya lowers rate by 75bp
Bank says there is scope for further easing following its second cut this year
Bank of Thailand launches data-sharing initiative
Central bank and regulators plan to make consent-based data-sharing mechanism operational in 2026
US auto loan delinquencies focused in new lending – study
Lower credit standards and higher payments, not interest rates, are key contributing factors
Timor-Leste to set up central bank institute with IFC
Project aims to strengthen capabilities in financial services and private sector more broadly
Bank closures lead to job cuts at small businesses – Fed study
Research finds that if 25% of local branches close, employment growth falls by four percentage points
HKMA launches new measures to support struggling SMEs
Authority expands banks’ access to company data and sets up taskforce to handle financing applications
BIS paper links interest rate risk to bank lending supply
Monetary tightening affects bank lending more when “duration gap” is larger, authors find