Regulation
ECB seeks capital clarity on Spire repacks
Dealers split between counterparty credit risk and market risk frameworks for repack RWAs
Risk management reviews are most common assessment method
Centralised teams are less likely to conduct external or management evaluations
UK’s Orange Book risk approach rarely used by central banks
Only three centralised risk management departments utilise principle
China’s interest-bearing CBDC a world first, experts say
E-CNY now more integrated with commercial banking, thus solidifying country’s two-tier system
BoE’s Ramsden defends UK’s ring-fencing regime
Deputy governor says rules remain “critical” to regulatory framework amid review to reform them
Staff error is largest cause of op risk at central banks
Legacy systems tend to trigger most threats in jurisdictions with greater than average number of incidents
Op risk incidents average over 100 a year among central banks
Financial impact is risk managers’ strongest metric for gauging incidents’ severity
Phishing and ransomware are central banks’ main cyber threats
Teams widely use training, monitoring and privilege management to mitigate cyber threats
Just under half of risk departments are sufficiently staffed
Units with satisfied staffing levels earn below global average annual salary
Book notes: The London Consensus, by Tim Besley, Irene Bucelli and Andrés Velasco
The authors set out guidelines to address shortcomings linked to the Washington consensus, but implementation will be a challenge
IMF paper urges regulators to merge IT and cyber rules
Regulation should reflect interrelations of IT and cyber risk, report says
Mitigation and reporting are leading components of risk strategy
Decentralised teams more likely to embed philosophy in divisional decision-making
Most centralised risk teams prioritise cyber security
Decentralised teams primarily cover credit and counterparty, op and market risks
Risk policies widely reviewed by committee in larger teams
Central banks with larger teams favour risk committees over CROs
Bowman’s Fed may limp on by after cuts
New vice-chair seeks efficiency, but staff clear-out could hamper functions, say former regulators
BoT details efforts to curb gold-related FX volatility
Financial institutions given new timeframe to verify gold transactions, with further measures planned
Renato Gomes on Pix, Drex and digital asset regulation
Brazil’s deputy governor speaks with Christopher Jeffery about pros and pitfalls of open finance, financial inclusion and crime on Pix, and the need to sideline DLT for Drex phase 3
2025: The year in central banking
A look back at the biggest and most popular stories of the year
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
Ireland publishes roadmap for streamlining regulation
Central bank governor insists it is not about lowering standards but improving framework’s quality