Macro-prudential policy
Working group minutes: macro-pru calibration challenges
Many central banks are struggling to get enough data, particularly on borrowers
Economists use AI to expand data on cross-border flow limits
IMF paper draws lessons from 40,000 policy moves designed to control financial flows
New capital requirements will reduce borrowing costs – RBNZ
Lenders to hold substantially less than under previous recommendations
ECB looks to simplify bank regs, supervision and reporting
Recommendations include merged buffers, lesser reporting burdens and an easier life for smaller banks
How generous is the UK’s new deposit insurance limit?
BoE’s decision to raise limit to £120,000 marks first change in eight years
Belgium simplifies capital buffers, increases CCyB by 25bp
Mortgage-specific measure to be folded into single, general buffer
Bundesbank following US instability ‘very closely’ – Nagel
Central bank president says AI and geopolitics pose risks to financial stability
BoE paper explores redistribution from macro-pru tools
Evidence suggests there are stability benefits but also costs from using borrower-based tools
Lagarde: ECB should supervise non-banks to prevent rerun of 2008
Monetary policy would benefit from more holistic prudential approach, president says
Financial Stability Benchmarks 2025 – model banks analysis
Data breakdowns reveal differences in risk perceptions, staffing and AI usage
BoE economists outline model of liquidity-solvency spirals
Model aims to test banks against the sort of interactions that led to collapse of SVB and Credit Suisse
Financial Stability Benchmarks 2025 – executive summary
Data sheds light on central banks’ assessment of tariff risks and other financial stability threats
Neutral counter-cyclical capital buffer averages less than 1%
But average neutral level of CCyB varies by economic groupings
Uncertainty necessitates strong capital buffers – ECB
Central bank calls for increased attention to macro-pru and monetary policy complementarity
US monetary policy has greater impact, BoK modelling shows
Researchers say findings show importance of diversifying export markets and monitoring US conditions
Do not loosen capital rules, ECB tells national authorities
Central bank says there are no signs that requirements are constraining credit supply in eurozone
Central bankers launch forum to share supervisory expertise
Forum on Financial Supervision at LSE overseen by Pedro Duarte Neves and Andrea Enria
Home loans with loose standards go sour when rates rise – ECB
Borrowers who “may not initially appear risky” could be swept away in a downturn, bank warns
Sweden moves to improve liquidity provision in resolution
Riksbank and debt office develop “joint approach” to clarify how lenders can source liquidity in crisis
Bank Indonesia to inject $4.8bn into country’s economy
Cut to liquidity buffer amid slowing growth aims to give banks greater flexibility in managing funds
Spain imposes capital buffers on Norway-exposed bank
Santander’s exposure to Norwegian market is above exemption threshold