Regulation
Financial Stability Benchmarks 2023 – executive summary
Key findings of the 2023 benchmark, including resources, regulation, macro-pru, crime and future risk
Non-banks taking on significant ‘hidden leverage’, FSB warns
Off-balance-sheet positions have grown, but data on many parts of the system is poor
Financial regulators: one, two, maybe a few?
As Jamaica moves to introduce the ‘twin peaks’ approach to financial oversight, Ben Margulies assesses some of the pros and cons
Financial Stability Benchmarks 2023 report – how central banks confront risk
Central banks discuss resources, regulating banks and non-banks, macro-pru, crime and future risk
Almost all central banks run stress tests on lenders
Most respondents say they conduct tests more than once a year
SEC targets NFTs in enforcement action
Two commissioners dissent from first SEC action against NFT issuer
Housing markets worry high income countries’ central banks
Middle income countries point to inflation and cyber crime as sources of risk
China rolls out more support for property sector and stock market
Authorities cut stamp duty on stock trades for first time since 2008 and relax home-buying rules
ECB: from a supply to a demand-driven floor?
Eurozone’s central bank expected formally to abandon corridor in forthcoming operational framework review
Most central banks say cross-border cyber co-operation is good
Respondents from upper-middle income countries most likely to say co-operation could improve
BIS paper highlights costs and benefits of crypto regulation
Decision to regulate needs to be backed by data and clear frameworks, authors say
Most central banks report rise in cyber attacks
Majority say they co-operate well with other agencies on cyber risks
Generative AI has ‘broad systemic implications’ – IMF
Economists argue regulators need to take action now to mitigate risks
Most central banks say AML/CFT co-operation is good
Small minority of institutions face problems working with domestic or foreign partner agencies
MAS finalises rules for stablecoins
Singaporean central bank to label qualified coins as “MAS-regulated stablecoins”
Central Bank of Ireland suffers credit data breach
Over 20,000 borrowers’ credit scores impacted by “archiving error”
High income countries’ central banks more likely to say AML/CFT risks are rising
Majority of institutions from middle income countries say money laundering risks have not risen
Custodia opens for business without Fed master account
Wyoming digital assets bank is continuing legal action against the US central bank
Central banks in high income countries less likely to want NBFI reform
But many central banks in middle income nations want regulatory changes
Bank resolutions averaged 1.8 cases in last decade – central banks
Lower-middle income countries report higher mean number of resolutions
Kenya revives interest rate corridor
Controversial 2016 law capping rates undermined earlier attempt at corridor
Most central banks operate in jurisdictions with deposit guarantee schemes
Few operate their country’s DGS, and some are working to reform schemes’ design
FDIC chair promises stricter rules for mid-sized banks
Gruenberg says regional banks will need better resolution plans and more long-term debt
Reserve requirements and countercyclical buffers are most common macro-pru tools
Dynamic provisioning and limits on credit growth are least-used measures