Liquidity
Three plans for digital payments: India, UK, and BIS
Das, Bailey, and Carstens discuss complementary tech, commercial bank innovation, and common platforms
PBoC launches new reverse repo operations
Injections via new liquidity tool could help offset maturing central bank loans to banks in fourth quarter
Three kinds of firm still vulnerable to 2023-style crisis – FSB
Hardest-hit banks suffered outflows of 20–30% of deposits each day, report finds
FSB warns of liquidity and maturity risks in tokenised assets
Report highlights financial stability implications if tokenised assets are widely adopted
Former LatAm governors propose new IMF liquidity tool
Emerging market fund would be aimed at stabilising bond markets during liquidity crises
CBDC design key to maintaining financial stability – IMF paper
Macro-prudential tools unlikely to be enough to offset risks from issuance of digital currencies
HQLAs ‘not liquid enough’ for Credit Suisse or SVB
Basel Committee report sheds new light on liquidity risk during 2023 banking turmoil
Lower risks enable authorities to shift policy – Amro report
Asean+3 research arm says challenges remain on dollar dependency and property markets
PBoC launches swap facility in bid to boost stock market
Financial institutions will be able to swap eligible assets with sovereign bonds and central bank bills
Reserve Benchmarks 2024 – model banks analysis
New breakdowns reveal differences in central bank reserves management by size and economic group
Lessons learned on macro-pru policies
Macro-prudential tools are proving their worth although use cases vary by country; integration into over-arching policy frameworks remains a challenge
Basel III endgame adoption more than doubles
Annual monitoring exercise shows progress, but US and some emerging markets lag behind
Rate markets had lucky escape from August stock crash, says BoE
FPC minutes suggest spillover might have occurred were it not for positive macroeconomic news
Banks should account for Fed facilities in stress tests – Barr
Vice-chair says doing so would help alleviate stigma over using discount window
Book notes: The monetarists: the making of the Chicago monetary tradition, 1927-1960, by George S Tavlas
A fascinating, scholarly and sympathetic account of the Chicago monetary tradition
US Bancorp ever more reliant on LCR relief
HQLAs would only cover 91.4% of bank’s net cash outflows without Fed’s cap
Interpreting the PBoC’s slew of policy reforms
How are new stimulus measures, bond market tactics, deflationary pressures and monetary policy framework changes affecting central banking in China?
Banknotes: July to September 2024
A round-up of news and salient issues that have affected central bankers in the past three months
Campos Neto on inflation targeting, independence and the future of financial intermediation
The Brazilian governor speaks with Christopher Jeffery about tackling inflation, the need for financial autonomy, and redefining the financial landscape with open finance, programmable Pix, deposit tokenisation and sound cross-border payments governance
Book notes: Easy money, cryptocurrency, casino capitalism, and the golden age of fraud, Ben McKenzie with Jacob Silverman
Casts light on how shady crypto characters defraud consumers but does little to identify and control such fraudsters while protecting the public
Hedge funds and dealers have outsized price impact – BoE paper
Mutual funds have smaller impact so may not play central role in fire sales, authors say
BoE to open non-bank emergency facility in Q4
Central bank working “at pace” to deliver facility, as it publishes provisional design
Central bank balance sheets: is there an optimal structure?
Establishing guidelines is challenging, although there are many reasons why CBBSes are heterogeneous
Monetary Policy Benchmarks 2024 – model banks analysis
Further breakdowns of the data reveal patterns in staffing, liquidity tools and transparency