Financial Stability
Six central banks report increase in AML/CFT risks
Nine in 10 institutions indicate having sufficient powers to deal with risks
Fed ends crypto and fintech supervision programme
“Novel activities” programme will be folded into normal supervisory processes
Central banks see cyber attacks as key financial stability risk
Respondents also reveal other elevated risks, including geopolitics and tariffs
Uncertainty necessitates strong capital buffers – ECB
Central bank calls for increased attention to macro-pru and monetary policy complementarity
Minimum gilt repo haircut could boost stability – BoE official
Measure helps prevent build-up of extreme leverage among non-banks, FPC member Benjamin argues
Cyber attacks rise in three-fifths of jurisdictions
Central banks lacking incident response team report highest rate of attacks
Brunei and Singapore ink cross-border collateral agreement
Central banks say move will allow access to wider range of collateral for liquidity operations
Ireland loosens credit union rules to spur green loans
Central bank expresses hope for more sustainable lending as it increases capacity from €2.9bn to €9.9bn
ECB study finds banks window-dressing before stress tests
Lower-ranked lenders shifted risky assets ahead of 2021 and 2023 exercises
ECB’s Machado renews push for deposit insurance scheme
Breakthrough in resolution framework paves way for more integration, supervisory board member says
BoE’s Benjamin on market resilience, non-bank liquidity and the modern financial system
The UK central bank’s executive director for financial stability strategy and risk speaks about leverage in the gilt repo market, minimum haircuts and central clearing, and securing liquidity to where it’s needed
Majority of central banks have analysed effects of tariffs
Spike in levies seen as having varying degrees of impact on financial stability
Only 30% of central banks conduct non-bank stress-testing
Exercise tends to be less common in institutions with smaller financial stability teams
Warren’s buffer plea is point-scoring, says expert
Professor attacks senator’s call for Fed to tighten bank regs, but echoes concerns about weak lenders
Most central banks seek improved regulatory frameworks
Key areas include laws on systemically important banks, liquidity risks, insurance and fintechs
Limit on insured bank deposit payouts averages $50,000
One in 10 jurisdictions lack any deposit insurance fund
Foreign open-end funds threaten financial stability – BoJ study
Researchers say external crises could lead to large outflows from vehicles investing in Japan
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
Two in five central banks see need for more macro-pru tools
Caps on loan-to-value ratios are respondents’ most actively used policy
Is this time different for Argentina?
Reserve shortage and overvalued currency cast a pall over an otherwise successful stabilisation campaign
Fed policy may disproportionally affect largest banks – study
More leveraged US lenders experience sharper stock declines following rate hikes, Fed paper finds
AI most widely used for document preparation in financial stability
Smaller financial stability teams less likely to utilise technology
US deposit insurance requires rethink, say experts
Dallas Fed study asks if current level is sufficient, while NYU professor argues for 100% coverage
Only 5% of central banks reveal individual bank stress-test results
Respondents share details of how stress scenarios are developed