Credit conditions
Major EU banks would withstand economic storm – ECB research
ECB test says in profound crisis below 10% of banks would struggle to meet capital requirements
Kenyan High Court strikes down law capping interest rates
But court rules law did not infringe central bank’s mandate and says caps could be brought back
BIS paper studies high-frequency data on central bank intervention
Sterilised foreign exchange interventions can help to slow credit growth, authors find
Europe’s ‘zombie lending’ harmed recovery – BoE paper
Forbearance appears to harm output, investment and total factor productivity, paper finds
Chinese premier clashes with central bank over credit expansion
PBoC rejects premier’s warnings over interest rate arbitrage and bill financing
Big tech companies poised to disrupt financial services – FSB
New report claims fintech hasn’t affected competition in financial sector, but big tech firms could pose stability risk
Fed’s Bowman says regulators must tailor regulations for smaller banks
But stress-test reform to relieve smaller banks is credit negative, Moody’s warns
Euro outpacing dollar as cross-border credit grows
Latest BIS statistics show widening gap between credit growth in the two major currencies
Bangladesh Bank eyes national savings imbalances
Growth is high and inflation “contained”, but high-yield products are draining deposits from banks
RBI can remove barriers to micro-credit – Acharya
Central bank looking to solve information problems in a “fundamental way”, says deputy
Summers and co-authors find negative rates can be contractionary
Policy rate cuts below zero can lead to higher lending rates by commercial banks, authors find
Costa Rica credit rating downgraded two notches amid persistent fiscal deficit
Fitch Ratings revised rating down despite early repayment of central bank and fiscal reforms
BoE’s leveraged loan research draws interest from overseas
UK exposures are modest but firms in US and Japan have bigger holdings of CLOs, which carry echoes of the subprime mortgage crisis
Mexico unveils measures to foster financial inclusion
Plan intends to promote digital payments, facilitate access to credit and deepen capital markets
EME banks have ‘substantially’ increased global footprint – BIS research
Study finds emerging market banks have taken a greater role as their home economies have grown
FCA cracks down on ‘dysfunctional’ UK market for overdrafts
Regulator fears vulnerable people are being exploited while banks claim lucrative fees
Fed presidents weigh in on December rate decision
Incoming data and recent speeches point to slightly more dovish outlook
Central Bank of UAE enforces higher credit standards on cheque usage
Central bank has asked lenders to advise customers to use other methods of payment if possible
Indian economy still strong despite financial troubles – RBI
Rapid credit growth continues despite need for ongoing liquidity support for non-banks
Bank lending standards can worsen financial frictions, ECB paper finds
Model shows tighter lending standards can damage productivity, researcher argues
Palestine launches financial inclusion strategy
PMA hopes to push inclusion rate up to at least 50% by 2025
Bank of England to overhaul consumer interest rate statistics
Changes are designed to ensure the statistics reflect consumers’ experiences “as closely as possible”
ECB paper examines banks’ responses to unconventional policy
Weaker banks’ sheets reduce credit supply in response to conventional policy shocks, paper finds
Information can substitute for collateral, BoE paper finds
Strong lending relationships can insulate a firm during booms and busts