Regulation
Climate stress tests are cold comfort for banks
Flaws in regulators’ methodology for gauging financial impact of climate change undermine transition efforts, argues modelling expert
Fed relief plan for G-Sib agency clearing welcomed
Rollback may revive interest in European FCM model, as principal clearing still treated punitively
Fed’s new liquidity rule spells more pain for US regional banks
Limit on HTM assets follows move to deduct unrealised losses from capital buffers
Middle income countries form largest membership of World Bank Ramp
Central banks highlight market intel, support, training as partnership gains
Half of middle income central banks intervened in FX markets in 2023
Liquidity tranches form largest part of reserves in lower-middle income countries
BIS warns of growing offshore reinsurance risk
Deals by private equity-backed life firms could mask risk in $25 trillion industry, report says
Most high income central banks engage in securities lending
But liquidity stress-testing tends to be common practice across middle income institutions
Running the numbers on Barr’s Basel III endgame revisions
Fed vice-chair’s plan to ease capital requirements for big banks still lacks critical details
Large reserve holders use external managers for intel and new assets
Staff training trumps new asset class adoption as overall goal for third parties’ engagement
Asset delegation to external managers averages just 12%
One in 10 central banks considering reviews of allocations to external managers
Alpana Killawala on communications under six governors at the RBI
The former RBI comms chief speaks about the importance of strategic communications, courting the media, open mouth operations and altering a governor’s ‘rock star’ image
Central banks split over impact of US sanctions on dollar reserves
De-dollarisation, if it happens, will be very slow, central banks say
BoE’s revised Basel III plans will be ‘welcomed by industry’
Banks will breathe “sigh of relief” over less stringent proposals, say experts
Reserve assets still rarely screened on ESG grounds
Bonds and equity indexes remain widely favoured for benchmarking
Ten central banks diversify portfolios with new asset classes
Institutions introduce green bonds and others into their reserve holdings
Cash use supporting ‘shadow economy’ in Slovakia – study
Central bank research points to “substantial” activity intended to avoid regulatory scrutiny
Fed’s vice-chair unveils watered-down capital requirements
Barr proposes reducing rise for largest banks from 19% to 9%
Asia-Pacific has highest assessing reserve adequacy metric
Ratios broadly higher among middle income central banks
Portfolio managers make up largest share of reserve teams
Staff average annual earnings hover around $30,000 level
US Bancorp ever more reliant on LCR relief
HQLAs would only cover 91.4% of bank’s net cash outflows without Fed’s cap
Financial Stability Benchmarks 2024 – model banks analysis
Further breakdowns of the data highlight patterns in governance, regulatory reform and cyber risk
The post-Archegos risk model rebuild begins… slowly
Following regulatory prodding, banks start to overhaul counterparty risk models. A flurry of new research on the topic may aid the effort
Interpreting the PBoC’s slew of policy reforms
How are new stimulus measures, bond market tactics, deflationary pressures and monetary policy framework changes affecting central banking in China?
Fed hikes stress capital buffers for 18 US banks
Nine dealers face record-high SCBs as poor performance in latest DFAST weighs on capital requirements