Risk
IMF expects global growth to slow further in 2019
“Significantly higher” and “increasingly intertwined” risks weigh on global growth, Lagarde says
BoJ must normalise policy to cope with ageing population – former official
Japanese firms face labour shortages and limited ability to raise prices- Shirai
Basel Committee softens impact of revised market risk framework
Final framework cuts expected increase in average capital requirements almost in half; committee may consider some further rule-making in 2019
Supervisory lessons: resolution is a ‘dirty business’
Former Bank of Spain head of supervision Aristóbulo de Juan reveals his principles for resolving problem banks in the final article of a four-part series
Individual bank diversification can increase systemic risk, researchers find
Banks that are not systemically important can be ‘systemic as a herd’, authors say
US equity prices affect consumer and business confidence, researcher finds
Results highlight risks to macroeconomy of recent equity slump
Blanchard calls for rethink on costs of debt
Fiscal cost of public debt may be zero, macroeconomist argues, but that does not make debt costless
Report reveals damage caused by Bank of Mongolia’s ‘quasi-fiscal’ policies
Discontinued policies may have undermined key parts of the central bank’s mandate, created inflation and generated huge losses, report finds
Lower interest rates make risky investments more likely – BoE paper
Gains from gambling increase when rates are low, researcher argues
Low rates can encourage risk-taking – BoE paper
Author models the risk-taking channel of monetary policy alongside a “bankruptcy channel”
RBNZ launches charter in bid to improve relations with banks
Relationship Charter designed to ensure institutions follow appropriate conduct
More trouble likely after ‘bumps’ in past quarter, says BIS’s Borio
Corporate debt markets are looking overstretched and could trigger problems; term spread may not be best indicator of recession, special feature finds
Five central banks and supervisors join environmental group
Network for Greening the Financial System aims to help meet Paris agreement goals
EME central banks can counter the next downturn
Philip Turner urges central banks to consider a broad range of actions to tackle volatility stemming from currency mismatches
Brainard reboots calls for countercyclical buffers
“Countercyclical capital requirements build resilience, unlike monetary policy,” Brainard says
IMF tells Jamaica to bring in risk-based supervision
IMF sets year deadline for new framework implementation and urges improved co-ordination among regulators
Fintech poses “serious” challenge to governance, says former PBoC deputy
Li Dongrong warns of fintech spillover risks, regulatory arbitrage and digital divide; dismisses PBoC use of ‘untested’ blockchain
Italian crisis and trade tensions are raising eurozone risk – ECB
Emerging market stress and fears of protectionism may drag down global growth, ECB says
UK banks’ holdings of leveraged loans ‘very small’, BoE says
Global leveraged loan market growing rapidly but lending standards falling, says Bank of England
FSB calls for action as regulatory deadlines pass
Mark Carney urges G20 to stay disciplined as global growth begins to fade
Interview: Clair Mills on the meaning of fintech
The Bank of England’s head of change and data management discusses why fintech is so important for a financial sector going into uncharted territory
Podcast: Crisis lessons
Central banks may have learned the lessons of the crisis, but are they fully on top of the risks?
Carney calls for financial sector to face up to climate risks
Outlook is “concerning” as losses from extreme weather hit record levels, BoE governor says