Credit conditions
RBI renews push for loan clean-up after Supreme Court defeat
Revised circular designed to avoid legal issues suffered by earlier version
Limited access to finance increased business exits in Great Recession – St Louis Fed
Illiquidity may have played a greater role than insolvency in business exits, researchers find
BIS research documents high concentration of cross-border credit
Big banks dominate global credit, which matters for global spillovers, authors say
RBNZ points to high private debt as main financial stability risk
New Zealand central bank stresses climate change impact on insurance industry
RBNZ review lends support to loan-to-value limits
Macro-prudential tool has been helpful in promoting financial stability, study finds
Bank of Italy paper looks at impact of long-term rates
Long-term rates have significant impact on Italian banks’ risk appetite, researchers find
Don Kohn offers advice on macro-pru under uncertainty
BoE looks at wide range of indicators but could still do more, FPC member says
Strong dollar is weighing on trade – BIS’s Shin
Advanced-economy monetary policy may have made the problem worse, he says
BIS paper finds some potential benefits to ‘bigtech’
Firms may be better able to predict losses and support underserved borrowers, authors find
India’s Supreme Court deals major blow to RBI bank clean-up
Court strikes down tough RBI ruling on stressed assets, ending requirement for swift action in cases of default
Housing debt increases on the back of reforms – Israel annual report
Bank of Israel documents changes in the mix of credit as reforms look to increase competition in the credit market
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