Leverage ratios
BoE paper finds heterogeneous policy transmission to firms
Authors say financial frictions “crucial” to understanding monetary policy transmission
Basel III changed securities dealing – Bank of Canada paper
Regulations have changed dealers’ behaviour and reduced risk, study finds
Manufacturing leverage weakens ECB monetary policy – BoI paper
Eurozone industrial firms’ response to policy shocks decreases as leverage rises, researchers find
MAS urges vigilance amid rising risks
MAS flags leverage risk in businesses tied to trade and property, as risks to global financial stability rise
Dominican Republic faces monetary policy trade-off – IMF paper
Researchers say financial system is healthy, but central bank faces hard choices over policy
Fed’s policy framework may incentivise reserves hoarding
However, this doesn’t seem to affect bank lending, Fed researchers find
Māori business principles support stability, says RBNZ’s Orr
Collectively-owned businesses are more stable, but many struggle to access capital, governor says
Corporate debt levels would amplify downturn, Brainard warns
CCyB should be used when stability risks are inconsistent with dual mandate, governor says
Fed floats new stress test reforms after industry pressure
Previous proposal drew criticism from major global banks
Market-based metrics are best signal for bank distress – IMF paper
Researcher finds vulnerabilities in large eurozone banks, while North America is least distressed region
Basel Committee overhauls leverage ratio to tackle ‘window dressing’
New disclosure rules aim to end “unacceptable” quarter-end rush to cut leverage
Boston Fed’s Rosengren warns about Japanese banks’ loan holdings
Exposure to CLOs now above Common Equity Tier 1 in one of Japan’s largest banks, data shows
US corporates ‘substantially’ more leveraged than thought – Dallas Fed researchers
Using a broader measure than debt-to-GDP, levels are almost double, they say
BoE may impose capital floors on UK firms – PRA chief
Sam Woods says some leveraged loans are based on “heroic” risk assumptions
Powell plays down fears about record levels of corporate debt
Fed chair’s remarks strike similar chord to those of Ben Bernanke in 2007, but Powell says this time is different
Bank profitability is associated with lower systemic risk – IMF paper
Over-reliance on non-interest income can increase institutional and systemic risk, researchers find
BoE unveils ‘systemic risk buffers’ for UK banks
Aims to ensure adequate capital within UK ring-fenced firms, as well as at global level
Fed proposes leverage ratio exemption for custody banks
Latest regulatory easing proposal would see custodians gain exemption for some assets
Interview: Sheila Bair on US regulatory reform and rollback since 2008
Crisis-era FDIC chair “saddened” by former Fed chairs’ focus on bailout powers
China calls a halt to deleveraging
Banking watchdog says deleveraging campaign has achieved its goals
Chinese premier clashes with central bank over credit expansion
PBoC rejects premier’s warnings over interest rate arbitrage and bill financing
Non-banks continue rise as banks lose market share
Non-bank financial firms hit a record high, at nearly half of global financial assets, FSB finds; leveraged lending increasingly an area of focus
Leverage increasing among large shared loans in US, regulators warn
Fed, FDIC and OCC say lenders are relying on borrowers’ “savings and synergies”
Debt growth a better warning signal than levels – BoE’s Broadbent
Deputy governor says countries with high debt levels did not necessarily suffer more during the 2008 crisis