Data
Over 90% of central banks trim duration as protection against inflation
Fewer institutions increased US Treasuries (18.75%), reduced exposure to unconventional assets (6.25%)
Central banks’ coverage ratio drops by 23%
Reserves buffers to cover monthly imports decline to 6.9 months
Staff salaries at reserves departments increased 17.6% from last year
Total staff numbers declined by 10% to 27
Inflation: what went wrong, and why?
Three theories on the causes of high inflation and their implications for policy responses
More central banks expand existing liquidity swap lines
More than 23% of participating countries gained access to IMF facilities over past year
Share of central banks screening ESG risks declines slightly
Central banks in Europe in top slot for including ESG criteria on their benchmarks
Is there a case for a retail CBDC in Japan?
A BoJ-managed, account-ledger ‘digital yen’ tied to the new Kotora payments may offer some potential
Central banks divided on how Russia sanctions will hit reserve currencies
Non-European central banks more likely to expect a growing role for renminbi in reserves portfolios
Most central banks will not alter diversification due to high inflation
Over 63% of central banks do not plan changes, while almost 27% are discussing modifications
Social media: an essential tool for central bank communication
Strategies to secure popularity, comprehensibility and reputation as new media takes centre stage
Boards remain key body in benchmarking approval
In almost 60% of central banks the board makes final decision, investment committee in 29%
Over 18% of central banks adopted new reserves assets last year
Middle income jurisdictions led the trend, 28.6% diversified their asset allocation
Emerging markets central banks maintain lead in portfolio tranching
European institutions are less likely to implement this strategy
Morocco’s Jouahri on inflation, forex reform, digitalisation and sustainability
BAM governor speaks about Covid-19, Fed tightening, BIS membership, regional co-operation and inclusion
Few central banks use FX swaps to defend exchange rate
Just 7% of participating central banks report using this practice
Privacy commissioner closes probe into RBNZ cyber defences
Central bank has “made every change recommended and more” in wake of hacker breach
Financial Stability Benchmarks 2022 report – confronting instability
Central banks answer questions on banking regulation, macro-prudential policy and financial crime
Most central banks carry out frequent stress tests
All banks that carry out stress tests say they have improved financial stability
Cyber attacks on financial market infrastructure are rising
Two-thirds report recent increase in attacks, but 80% report good cross-border arrangements
Over half of central banks say AML risks are rising
But most say central banks co-operate sufficiently across borders against money laundering
Central banks rarely lead AML/CFT efforts
Most institutions do not want more AML/CFT powers
Earnings in upper-middle income economies outstrip high income peers
Financial stability staffing tends to match jurisdiction’s income level
Most central banks lack primary oversight of NBFIs
Many institutions capable of regulating non-banks, but just a few solely exercise such powers
A quarter of central banks have insufficient financial stability powers
Some respondent institutions need new powers urgently