Risk
Fed triggers lift-off with 25bp hike
FOMC cuts economic growth projections for 2022 but proceeds with tightening
Book notes: Shutdown, by Adam Tooze
A useful, wide-ranging overview, showing how health and economic policies are intimately intertwined with geopolitics
Anti-money laundering and countering the financing of terrorism focus report 2022
Anti-money laundering authorities face a never-ending battle to track and block the proceeds of financial crime. Increasingly, they are finding themselves in a technological race to stay ahead of criminals
Hong Kong recovery expected to slow – IMF
Fund warns of risks including exposures to Chinese real estate and further supply disruption
Markus Brunnermeier on the need for CBDCs
The Princeton academic co-authored a paper for the European Parliament exploring the potential pitfalls of CBDCs. But they are still needed, he says
Bundesbank raises inflation forecast
Nagel calls for policy normalisation and says Bundesbank could increase risk provisioning again
Rethinking sovereign risk
‘Risk-free’ assets now include the possibility of complete confiscation with no recourse
Risk Management Benchmarks 2022 – executive summary
Insights on risk priorities among central banks and how they are changing
Diego Labat on policy normalisation, capital flows and tech challenges
The Central Bank of Uruguay governor speaks with Christopher Jeffery and Ben Margulies about governance, financialisation, flexible rates versus capital controls, payment upgrades and CBDCs
Machine learning and NLP top regtech tools
Micro-prudential reporting and risk assessment are main regtech applications
Efficient data reporting is main suptech driver
Resource constraints are the biggest challenge in developing a suptech strategy
Change at the Bundesbank: from Weidmann to Nagel?
Joachim Nagel’s appointment highlights the importance of politics at the apex of German central banking. Veteran central bank watcher Klaus C Engelen looks at the media reaction and asks if Buba/ECB discord is set to continue
Payments efficiency is driving force behind many CBDCs
Inclusion, financial stability and monetary policy are also leading factors
European banks face increased leveraged lending risks, says Enria
SSM chair highlights cyber attacks and climate change as emerging risks to financial stability
Fed paper explores stablecoins’ impact on financial system
Researchers say stablecoins could be a ‘digital safe haven’ during volatility, but design choices matter
Picking up the pieces: how to tackle the next phase of the Covid crisis
The global economy is heading into dangerous territory, writes Jagjit Chadha. Central banks must honour their commitments to price stability
Navigating the digital transformation at Deutsche Bundesbank – an update
Joachim Wuermeling explains how the Covid-19 pandemic and other developments have affected the German central bank’s digital transformation during the past two years
The case for trade surveillance in FX and fixed-income markets
This whitepaper explores the essential need for central banks to monitor activity for signs of market abuse, which has a negative impact on the economy and society
Facebook-backed stablecoin project to wind down, report says
Project formerly known as Libra had struggled to gain regulatory approval
ECB launches climate risk stress tests
Exercise will feed into SREP and could indirectly affect lenders’ capital ratios, ECB says
Fed signals time will be right for rate hike ‘soon’
QE set to end in March, with balance sheet to start shrinking after rates rise
Two-thirds of central banks have a centralised risk unit
Central banks with a centralised risk unit tend to use KRIs
Responsibilities and risk management changed at 43% of central banks
Responsibilities modified over last two years required parallel developments in risk management
Banks can exploit imperfectly informed investors – BIS paper
Some banks gain additional funding from investors who underestimate their credit risk, analysts find