Systemic risk
Covid-19 should serve as warning for climate change – BIS official
Policy-makers need “holistic approach” to global risks, says Luiz Awazu Pereira da Silva
Book notes: In the combat zone of finance, by Svein Harald Øygard
A fascinating and readable book for those charged with maintaining financial stability and interested in a new perspective on institutional efficiency
‘Ostrich approach’ to financial stability is a mistake
Denmark’s top supervisor, Jesper Berg, says scaling back IFRS 9 would be a costly error, despite the economic challenges raised by Covid-19
PBoC takes on regulation of key financial infrastructure
Chinese central bank to take bigger role in regulation as country seeks to improve financial infrastructure
Some countries lack systemic banking crisis resilience – IMF report
IMF staff sketch out priorities for countries’ resolution-planning frameworks
IMF-MAS research says cyber risks can be modelled with limited data
Public data can be used to create unique formulae to model hypothetical cyber attacks
Governor of the year: Mark Carney
Carney has played a vital role in managing Brexit risks while driving efforts towards climate, payments and dollar funding reform
Twelve countries’ financial sectors under IMF spotlight in 2020
Fund reveals which nations will undergo financial stability assessments, detailing which areas will face greater scrutiny
Bank of Canada paper looks at risk in securities dealing
More complex dealer networks can increase probability of settlement failure, researchers find
Non-bank growth slowed in 2018, says FSB
Riskiest forms of non-banks still growing, but overall assets went into reverse in 2018
BoE and FCA move to tackle systemic risks in open-ended funds
Illiquid funds will be expected to impose a price discount or delay in event of investor sales; Mark Carney says issues are “increasingly appreciated” in global discussions
Forex market growing, but more risky – BIS review
Reduced reliance on PvP and heightened fragmentation threaten market resilience
Cyber stress tests reveal risks in Singaporean firms
Insurance firms report potential losses as high as $3.4 billion, while banks’ costs could hit 65% of quarterly profits
FSB’s G-Sib list increases by one
One joins the list and one major bank drops to a lower bucket
BoE’s Tenreyro comes to the defence of flexible exchange rates
Policy-maker challenges conventional wisdom in several areas of economics
DNB paper looks at how regulation affects systemic risk
Restrictions on entry increased systemic risk before financial crisis, researchers say
Interbank networks may be too decentralised – BoE paper
Model of how networks develop implies laissez-faire may not be optimum policy
BoE FPC: Markets may ‘jump to illiquidity’ if stressed
Debt and “structural illiquidity” could amplify global shocks, warns committee
Big tech: a threat to banks?
The explosive growth of financial services offered by big tech companies in China offers important lessons
BoE paper measures ‘market-implied’ systemic risk
“Shadow capital adequacy” shows how default risk impacts capital assessments
Agustín Carstens on fixing the global monetary system
The BIS chief speaks about how to strengthen the global safety net, vulnerabilities in emerging markets and the challenges and opportunities posed by fintech
Central banks face loss of independence – Central Banking survey
A new survey of Central Banking’s Editorial Advisory Board points to central banks facing existential challenges with little change in their frameworks or toolkits
Canadian collateral can withstand crisis-level systemic risk – BoC paper
Trading by bank customers could be a potential indicator of future crisis, researcher says
BIS paper proposes network model of global contagion
Authors create a network of CDS linkages to assess contagion risk in the financial system