Financial Stability
Knot says financial stability risks are growing
FSB chair says emerging economies are particularly vulnerable as financial conditions tighten
US experts believe inflation will fall, eventually
CPI inflation surges above consensus forecasts, but economists expect a turning point soon
Sri Lankan governor warns of danger to IMF deal as chaos mounts
Weerasinghe says talks over IMF bailout package must continue, as president tries to flee country
Chinese authorities step in amid banking crisis in Henan
Promise to repay depositors follows violent clashes between account-holders and local security officials
BoE’s Woods dismisses calls to weaken Solvency II reform
Deputy governor admits matching adjustment remains a “point of contention” with industry
CPMI creates framework for linking payments
Linking and use of APIs could cut need for long chains of correspondent banks, report says
Europe’s banks must change climate risk approach, ECB says
ECB’s first climate change stress test finds 60% of lenders lack stress-testing frameworks
BoJ to study impact of CBDC on bank deposits
Report says safeguards needed to prevent possible “rapid shift” from bank deposits to CBDC
Big tech links are ‘policy blind spot’, says FSI
Basel-based institute says tech firms are “increasingly intertwined” with financial sector
FSB cross-border payments work hampered by data problems
Measuring progress “will not be straightforward”, working group says
BoE flags global risks in ‘opaque’ commodities market
LME disruption reveals “highly leveraged” participants within financial system
ECB introduces green asset policy
Moves aim to “gradually decarbonise” Eurosystem’s bond holdings, ECB says
Basel Committee proposes capital add-ons for crypto exposures
Committee tightens proposed rules in several areas following high-profile crypto failures
China and Hong Kong to launch derivatives trading link
HKMA chief says Swap Connect scheme will allow global investors to manage interest rate risks from bond investments on the mainland
Danish central bank sceptical on retail CBDC
Report says existing payment systems offer similar benefits, but case for CBDC could change
G30 warns US Treasury market remains vulnerable
Group says US regulators need to do more to prevent dysfunction in the critical market
Libyan central banks have open dispute as political climate worsens
Tripoli-based central bank denies counterpart’s claims of lack of liquidity
Central banks should take on more credit risk during stress – BoE paper
Research claims generous credit terms can be more efficient than cutting the risk-free interest rate
GFXC launches tool to spur buy-side adoption of FX code
Standard-setter aims to overcome “lukewarm” buy-side response with web-based prototype tool
Banking systems’ long-term systemic risk has grown – ECB paper
Assets became safer but banking systems’ failures were more harmful, analysis finds
State Bank of Pakistan appeals to supreme court over interest ban
Sharia court ordered Pakistan to adopt fully Islamic banking system within five years
(Un)stablecoins and central banks
Time to tackle stablecoin structures and support mechanisms
Fed finds major banks able to withstand ‘severe recession’
All banks pass stress test despite tougher scenario than in 2021
Chaos around Lebanese central bank grows
Audit due to recommence but judge says governor cannot be found by police, reports say