Risk
Floored: Basel III rethink upsets IRB dominance
Introduction of output floor means internal ratings’ popularity takes a hit, but isn’t quite out for the count
ECB tells banks to plan for AI-related collapse in cyber defences
European Systemic Risk Board warns response times have narrowed from days to minutes
RBNZ tightens policy and expects more hikes to come
Central bank says inflation still above target
Yen options dealers struggle to hedge intervention risk
Hedge funds’ bets on BoJ intervention are leaving dealers with vol-surface exposures they can’t hedge cheaply
China allows its investors greater access to offshore bonds
PBoC ups quota as HKMA expands yuan funding and city begins trial run for gold clearing
ECB’s T2 suffers second ‘incident’ as Euronext reports outage
Euro and krone T2 settlements queued for 30–40 minutes following system update last month
Vanuatu holds rates and forecasts continued economic recovery
Pacific island nation’s central bank says reconstruction efforts, tourism, to drive economy
Half of jurisdictions practise collateral pre-positioning
Most believe banks in their jurisdictions are ready to access emergency central bank liquidity
Banque de France’s Denis Beau on supervisory reform
The Banque de France’s deputy governor speaks about suppression of the systemic risk buffer, proposals for a TLAC floor, and simplifying bank regulation and resolution
Co-ordination key to alleviating tokenisation risks – IMF official
When activity is on shared ledgers, governance failures become systemic risks, Tobias Adrian says
Pooled reserves could improve global financial safety net – paper
‘Synthetic reserve deposit’ could cut costs and improve performance, authors say
Lagarde ‘regrets’ forward guidance and Warsh plans ‘family fight’
Fed, ECB, BoC and BoE heads discuss inflation, uncertainty, AI, stagflation and independence in Sintra
Private credit ‘probably closer’ to end of cycle
Risk managers say regulatory scrutiny, such as BoE’s Swes, is justified
Asean’s expanding and evolving swap lines
The Asian trade bloc – with and without China, Japan and South Korea – wants to strengthen emergency liquidity support
AI poses risk to global financial stability – RBI
Technological disruption and geopolitical fragmentation are reshaping financial system, says governor
More data does not mean better outcomes – EBA policy expert
EU’s previous credit risk approach created ‘crazy backlog of model validations’, official says
EUR vs USD stablecoins is the wrong debate
Market structure and regulatory cohesion is at the centre of the stablecoin liquidity evolution, says Flow Traders’ digital assets head
Elizabeth McCaul on the need for resilience in cyber security
Former ECB official explains why response preparedness is more important than predicting attacks
RBA outlines monetary tools for stimulus when rates are low
Central bank says additions to policy toolkit make it better prepared for shocks
Hong Kong scales up in bid to attract central bank gold
Financial bureau chief targets Asian institutions to bolster gold storage to 2,000 tonnes, use new trading and central clearing services plus links to China, amid sovereign immunity concerns
QE reduces bonds’ safe haven properties – BdF paper
Safety is becoming ‘increasingly fragmented’ across asset classes, researchers say
Banxico holds rates at 6.5% in end to easing cycle
Board says inflationary risks remain ‘tilted to the upside’, despite recent easing of price pressures
ECB scraps 40 supervisory publications in simplification push
Revised guidelines should make bank’s expectations clearer, says vice-chair of its supervisory board