Resolution
Liquidity dependence may hamper QE exit
Expanding reserves may prove perilous for financial stability, with maximum danger during QT, writes Viral Acharya
Chinese authorities arrest 234 suspects linked to Henan banking scandal
Authorities also start repaying more depositors after months-long freeze
Rethinking regulation of the modern financial system
Rules need to address uncertainty in addition to risks, and should not be too complex
BoE finds ‘shortcomings’ in three UK banks’ resolution plans
But central bank’s first resolvability assessment concludes banks can now fail “safely”
BoE set to gain stablecoin insolvency powers
Government proposal would amend existing rules for dealing with failed payment systems
Chinese draft law sets up financial stability fund
New government committee would oversee financial stability as concerns grow
Some CCPs could struggle to cover major losses – FSB
Cyber attack could pose serious problems for systemically important CCPs, report finds
Sberbank Europe enters insolvency
Subsidiaries in Croatia, Slovenia and Bosnia sold off as sanctions cripple Russian lender
ECB says Sberbank Europe is close to collapse
Russian-owned bank likely to be unable to pay its debts “in the near future”, supervisors say
FSB says gaps remain in resolution regimes
Ten years since resolution framework was published, bank bailouts are still taking place
Financial Stability Benchmarks 2021 report – keeping the sector secure
How do central banks seek to protect financial stability? Benchmark exercise presents responses on AML/CFT, cyber, macro-prudential and other risks
Banks resolved in almost half of jurisdictions surveyed
Jurisdictions with more bank resolutions had higher NPL levels, benchmark exercise finds
EU bank resolution law needs reform – research
Law should recognise guarantees for subsidiaries by parent banks, NBB paper says
Villeroy de Galhau calls for banking union to be completed
French governor proposes creation of common deposit mechanism
Three ways to bolster flawed AML/CFT in the EU
EU must address significant weaknesses if it wants to combat illicit money flows, write Panicos Demetriades and Radosveta Vassileva
Charles Goodhart on inflation targets, financial stability and the role of money
LSE professor says AIT a mistake, independence under threat amid inflation surge and climate stress tests unconvincing
Governance Benchmarks 2021 report – the frameworks that rule central banks
Benchmarking data offers insights on appointments, legal structures, powers, independence and more
Cash infrastructure as public good – implications for the cash cycle
Eurosystem is seeking to safeguard cash infrastructure even as transaction volumes plunge
Central Bank of Kenya to liquidate bank after ‘severe violations’
Action on smaller lender comes as CBK looks to complete long-running resolution of Chase Bank
The evolving ‘strategy function’ in central banks
Study shows central banks still struggle to fully utilise strategy units
Zhang Tao on the IMF’s fintech agenda, CBDCs and big tech oversight
IMF deputy MD speaks about the fund’s views on CBDC operating frameworks and macrofinancial surveillance
Final FSB report warns ‘gaps’ remain in resolution framework
Study highlights “progress” but also shows “more can be done”, says Claudia Buch
The Covid crisis, central banks and the future
Crisis responses were needed, but have exacerbated significant underlying challenges facing central banks
ESM to become backstop to Single Resolution Fund
Revised treaty enhances fund’s role in future adjustment programmes and crisis prevention