Risk
Looming US Basel endgame redraft sparks calls to save IRB
Experts say 20 years of data makes credit risk models more appropriate than standardised approach
FSB: big banks could be sidelined from future rescue deals
Exacerbation of too-big-to-fail means G-Sibs could already be too large to take extra assets
Risk Management Benchmarks 2025 – model banks analysis
Drilling into the data reveals patterns in risk prioritisation and department structure
Risk Management Benchmarks 2025 – executive summary
The benchmarks reveal an ongoing focus on cyber risk, but climate and AI risks are rising fast
Risk Management Benchmarks 2025 report – mind the techno-political gap
Responses show central banks’ shifting priorities as volatility increases
Czech governor wants central bank to add bitcoin to reserves
Michl to make proposal to CNB’s board, while recognising cryptocurrency “bubble” could burst
Non-banks and banks are interwoven, says ex-RBI official
Policy-makers should study connections between them when crafting regulations, argues Viral Acharya
Central banks need to step up their crisis management plans
Patrick Honohan argues that robust preparation can better protect reputations in the event of a crisis
Book notes: Central bank capitalism: monetary policy in times of crisis, by Joscha Wullweber
This book asks if independent monetary policy is feasible at a time when central banks prop up the poorly regulated shadow banking sector
Central banks’ words matter for climate
Line between EMEs speaking about greening finance and AEs being wary of climate risks are blurring, argues Emanuele Campiglio
Central banks typically employ detailed business continuity plans
But institutional risk appetite is less commonly included, especially in Europe
Stress-test findings should be combined – BoE’s Benjamin
Bank’s director of financial stability strategy emphasises importance of “joining the dots”
A third of central banks lack key risk indicators
Most of those with KRIs conduct monitoring and employ feedback loops
Basel stops short on wrong-way risk
New guidelines a step in right direction, but experts warn they won’t prevent another Archegos
ECB lists climate and tech risks as supervisory priorities
SSM says strong governance and geopolitical risks will also be among key areas of focus in 2025–27
Direct system breaches are top cyber risk
Main threats vary by cyber security staffing and economic groupings
Trump 2.0 bank supervision: simpler but no soft touch?
Republican FDIC vice-chair Travis Hill wants more focus on financial risk instead of process
Over 60% of risk departments face staff and resource shortages
Teams that face hiring challenges generally have to make do with smaller risk departments
Barr’s Fed exit likely to delay, but not destroy, Basel III
Market risk, op risk and leverage ratio all in the sights of Barr’s potential successors
Accounting for banknotes
Three leading experts on central bank finances debate the appropriate treatment of currency
Cambodia allows banks to handle stablecoins and backed cryptos
Central bank sets up legal framework to regulate cryptocurrency activities