Financial Stability
Bank of Jamaica increases efforts to stimulate inflation
Central bank cuts policy rates and reserve requirements to spur credit growth
Chinese premier clashes with central bank over credit expansion
PBoC rejects premier’s warnings over interest rate arbitrage and bill financing
Australian governor says productivity rises needed to boost incomes
Lowe told lawmakers falling house prices will not ‘derail’ Australian economy
World is not running out of safe assets – BIS’s McCauley
Supply of safe assets can comfortably meet demand at present, BIS economist says
US bank interconnectedness is falling – San Fran Fed paper
New method focuses on idiosyncratic factors to identify possible links, researchers say
Buffers should not be rebuilt too quickly – Bank of Canada paper
Requirements should be lower during crisis recovery to avoid bank default, researcher argues
Former Fed chairs join over 3,000 economists in call for carbon tax
Economists including central bankers and Nobel laureates demand action on climate change
EBA probes alleged AML failings by Danish and Estonian authorities
Estonia and Denmark criticise each other’s ‘failings’ over supervision of scandal-hit bank
Climate change: a new challenge for financial stability?
Do climate change and the transition to a low-carbon economy pose a risk to financial stability? What is the role of central banks?
Fourth non-bank gains BoE settlement account
Bank of England continues to level the playing field with new entrant FairFX, following FCA audit
Nordic-Baltic crisis simulation seeks to reinforce collective response
Nordic-Baltic Stability Group carried out first region-wide crisis scenario in January
The Brexit conundrum
The Bank of England has only limited room to respond to a hard Brexit
Volcker rule helped curb equity market risk – researchers
Banks had large trading exposures to equity market risk before the rule was introduced, they find
Weak EU banks more likely to prop up ‘zombie firms’, ECB paper says
EU needs insolvency reform to reduce proportion of uncompetitive firms, researchers argue
IMF prepares to overhaul its financial surveillance
Fund agrees with IEO report that there is much room for improvement, but budget remains an issue
MAS establishes long-term corporate governance committee
New body will replace short-term councils formed every few years
ECB paper presents new financial crisis early warning system
Model aggregates five types of systemic risk indicator, researchers say
UK cash system needs revamp, says Payment Systems Regulator chair
Charles Randell tells lawmakers the regulator will look at entire cash provision infrastructure in 2019
Brexit solution that ‘works for all’ must be found – Carney
BoE governor calls Brexit an “acid test” of a “new global order”
For-profit CCPs may not hold socially optimal capital – BIS paper
“For-profit CCPs have incentives that are misaligned with financial stability,” author says
FSB publishes annual work programme for first time
Priority is to address new vulnerabilities, while finalising, implementing and evaluating reforms