Systemic risk
People: Former DNB chief Knot joins Systemic Risk Council
Plus appointments at BIS Innovation Hub and Turkish central bank
Concentrated IT market poses systemic risks, Dutch say
AFM and DNB urge Europe’s financial sector to diversify digital service providers
ESRB says central banks may be forced to intervene in stablecoin crises
New report lists concerns around regulatory arbitrage, de-pegging and monetary sovereignty
EBA chief urges global action on multi-issuance stablecoins
Reserves backing currency should move “seamlessly” across borders to enable fungibility, says Campa
EBA’s Campa on simplifying EU regulations and supervising stablecoins
The departing pan-European supervision chief speaks about advancing the banking union, streamlining the implantation of new rules, financial resilience and why he is stepping down early
ECB says digital euro would not disrupt financial stability
Lenders remain healthy under modelled crisis scenario, regardless of CBDC’s holding limits
FX market becoming stronger transmitter of stress, IMF warns
Fund probes changing structure of world’s ‘largest and most liquid financial market’
Interest rate risk rules need more work, says Fed’s Barr
Former vice-chair for supervision also says his redraft of Basel III would have softened NMRFs
Central banks must focus on comms – Bank of Finland panel
Institutions need to concentrate on anchoring inflation expectations, governors say
Geopolitics, crypto and inequality are systemic risks – ESRB panel
Geopolitical risk is shaping markets, institutions and the financial system, says Olli Rehn
Uncertainty necessitates strong capital buffers – ECB
Central bank calls for increased attention to macro-pru and monetary policy complementarity
Fed’s new leverage ratio: the horse that never left the gate
Most of the biggest dealers aren’t leverage constrained now, and experts are sceptical that banks will use the extra capacity for Treasuries
ECB study finds banks window-dressing before stress tests
Lower-ranked lenders shifted risky assets ahead of 2021 and 2023 exercises
Climate risks still on the fringe of monetary policy in Asia
Notwithstanding efforts by the PBoC and BoJ, there is still a need to observe persistent and measurable impacts on inflation and output before climate change truly influences interest rate policy, argues Sayuri Shirai
The cost of inaction on wholesale CBDCs
A gap exists between demand in capital markets and most central banks’ research priorities as evolving risks accrue
Bailey, the IMF and the fundamental asymmetry problem
The IMF must address sovereign asymmetry and transform surveillance into a tool for mutual accountability, argues Biagio Bossone
Elizabeth McCaul on supervision, new macro-dynamics and investing in suptech
Former ECB Supervisory Board member speaks about Covid-19 and Credit Suisse shocks, regulation debates, the rise of non-banks and what makes tech projects succeed
Fed independence concerns raising risk premia – research
Authors of BBVA study say long-term yields briefly spiked amid rumours that Trump would fire Powell
Russia cuts rates by 200bp, citing moderation in inflation
Experts say central bank waited until expectations had moderated and cut may support country’s lenders
Fed hears renewed calls for tuneup of G-Sib surcharge
Failure to revisit 2015 methodology has led to inflated systemic risk scores, experts say
Wholesale bank funding boosts policy transmission – paper
NBER study highlights trade-offs between reducing systemic risk and facilitating credit flow