Financial Stability
BoE launches first ‘system-wide’ stress test
Analysis will assess how banks and non-banks interact to amplify shocks
Bank failure déjà vu
New bank capital rules were meant to ensure failures would be less frequent and resolution not involve taxpayer money. Then came the collapse of Silicon Valley Bank and Credit Suisse, writes Jesper Berg
Hong Kong launches HKD-RMB dual trading counters
Offshore investors now have the option to trade 24 RMB-denominated stocks in Hong Kong
Rate risk under Pillar 2 left ‘hole in the system’ – Ingves
Former Basel chair says rate risk “probably” should fall under Pillar 1; greater focus needed on liquidity rules
Central banking against a full-scale war
National Bank of Ukraine governor Andriy Pyshnyy shares seven statements about ‘antifragility’ and the ability to function under uncertainty – and succeed
Foreign de-risking keeps Somali banks isolated, governor says
Central Banking Summer Meetings: Somalia needs to rejoin world finance system after payments success
Borrower-based measures show value as macro-pru tools
Central Banking Summer Meetings: Central bankers resist pressure to ease buffers at first sign of downturn
Senior US officials criticise new third-party risk guidance
Members of Fed and FDIC boards object to vagueness and burdens on smaller banks
Turkish president appoints new governor
Erkan faces exceptional challenges as questions remain over Erdoğan’s willingness to cede control
Philippine central bank cuts lenders’ reserve requirements
Move comes after BSP paused monetary tightening in May
More central clearing could have eased Covid shock – BoE paper
Efficiencies for dealer balance sheets could allow banks to play greater stabilising role, authors say
Eurozone needs harmonised resolution tools, officials say
Commission proposals could bolster stability and common deposit insurance plans, say supervisors
Economists warn Philippines state fund could increase corruption
Central bank will contribute annual dividends to fund for two years, delaying capital increase
IMF plays key role in Ukraine aid
Ukraine is first country to receive large loan under new lending standards
Rule-setters need to heed their own advice
The US risks a reputation for failing to meet standards to which it holds others
Banknotes: April to June 2023
A round-up of news and salient issues that have affected central bankers in the past three months
Boston Fed paper looks at wider impact of banking stress
High levels of leverage magnify impact of bank crises on output and employment
Hong Kong legalises retail crypto trading
Licensed exchanges will be able to trade major virtual tokens to retail investors
IMF economist takes on vexed question of macro-pru calibration
Housing markets are “at a turning point”, says Laura Valderrama, and policy faces tough trade-offs
Common deposit insurance essential for financial stability, says ECB
Central bank says tighter financial conditions are putting pressure on households and businesses
Sarb sounds alarm on sanctions risk
Central bank says country could face financial isolation if US thinks it arms Russia
Wuhan’s finance regulator asks hundreds of firms to repay debts
Call for repayment underscores debt troubles in Chinese regional governments amid wider slowdown
Central Bank of Chile sets first counter-cyclical buffer
BCC also warns government could face financing problems
BIS’s Restoy warns of limits to deposit insurance reform
Better use of supervision could solve many issues without deposit insurance reform, official says