Macro-prudential policy
Israel political crisis sparks fears for economy
Bank of Israel governor reportedly convened financial stability committee last week
Macro-pru tightening can cause ‘risk leakages’, ECB paper finds
Policy-makers should tighten household limits early in the credit cycle, researchers say
UK prepares to regulate crypto sector
Government wants to “capitalise” on benefits of crypto assets while controlling the risks
Fed deals double blow to crypto bank
Wyoming-based Custodia turned down for Fed membership and master account
BIS paper finds ‘mixed’ evidence of non-banks triggering spillovers
“Extreme” capital flows have not worsened, but central banks are also more active, authors note
Financial Stability 2022 – presentation
Subject specialist Dan Hardie speaks with Christopher Jeffery about financial crime, regulating banks and non-banks, macro-prudential regulation, and decision-making and staffing
Riksbank calls for housing and tax reforms to reduce financial risks
Financial system faces risks from highly indebted households and real estate firms, report says
Senior BIS official highlights risks to Asian economies
Chief Asia-Pacific representative warns of increased debt levels in Asia
Financial Stability Benchmarks 2022 report – executive summary
Data sheds light on how central banks are dealing with risks to stability
Fintech needs better oversight as risks grow, FSI says
Basel-based group sees room for system-level testing and closer scrutiny of tech firms
Richer nations less likely to have central banks as sole macro-pru authority
Respondents from lower-middle income countries more likely to be only macro-prudential body
Activity-based regulation will not guarantee level playing field – BIS paper
Authors propose framework to clarify use of entity- and activity-based regulations
Eurozone needs macro-prudential tools for climate change, says ECB
Regulators are struggling to address climate change risks, joint ECB-ESRB report finds
Rethinking regulation of the modern financial system
Bank of Italy’s Maurizio Trapanese writes that rules need to address uncertainty as well as measurable risks, entity types as well as activities, and should not be overly complex
Shadow banks need macro-pru regimes – Bundesbank paper
Limits on shadow banks’ leverage could have helped avert global financial crisis, researcher finds
Tackling private-sector debt in the wake of the pandemic
Navigating Covid-19 debt is more of a challenge amid gathered storms of inflation and war, write Roong Mallikamas and Benjamin Weigert
BoE paper models macro-prudential spillovers
Agent-based model sheds light on how housing market policies affect different groups, authors say
Bank of Jamaica will expand supervision of climate risks
Central bank notes island country is among 20 most vulnerable to climate change
Turkish central bank tightens reserve regime for lenders
Central bank will also penalise lenders with high levels of foreign-denominated accounts
Uzbekistan central bank orders 300bp rate increase
Board refers to “high uncertainties and tensions in the external economic environment”
Raskin Fed role in doubt as key senators voice opposition
Manchin says appointment would “politicise” Fed with opposition to fossil fuels
Reciprocity can curb macro-prudential ‘leakages’ – BIS paper
But gains can be small, which may explain limited use of reciprocity to date, authors say
BoE consults on removing macro-prudential rule
Affordability test has drawbacks and may no longer be needed, given other tools, says FPC
ESRB calls for European cyber incident framework
Regulators must have joint response to systemic cyber incidents