Financial Stability
Paraguay’s Carvallo Spalding on resilience and cutting its inflation target
The Central Bank of Paraguay (BCP) governor speaks about lowering the inflation target to 3.5%, opening up to foreign investors and promoting inclusion through digital payments
FSB warns of liquidity stress in CRE markets
Opaque valuation and high leverage among vulnerabilities in $12 trillion property sector
US Senate passes ‘Genius Act’ to regulate stablecoins
Regulators express concerns over stability risks; senator says bill could trigger “next financial meltdown”
BoE seeks balance in regulating financial innovation
Prudential supervisor outlines hands-off approach for AI but tight rules for crypto
Climate risk could affect both financial and price stability – BdF’s Dees
Head of French central bank’s climate economics unit says monitoring climate risks is vital for fulfilling primary mandate
Overvalued US stocks weaken FCIs’ signal effects – ECB research
Policy-makers should not be blinded by inflated equity prices, authors say
Basel Committee on right track with climate framework – expert
Outline for voluntary environmental risk disclosure “pragmatic”, former central bank official argues
ECB’s Montagner: banks, insurers need separate capitalisation
Insurance arms should not backstop banking businesses in bancassurance groups, top supervisor says
BoE analysis sparks debate over reuse of repo collateral
Central bank policy analyst contends reuse of collateral may amplify volatility in repo rates
PMA attacks Israeli efforts to end bank co-operation
Authority says proposal would cut off Palestinians’ access to basic goods and services
Monetary policy faces new era of complexity – Bosnian governor
Selimović urges rethink of central banking amid constant disruption and uncertainty
MREL cut must be paired with more external funding – BIS’s Restoy
Reforms to resolution regime might appear technical but entail political choices, FSI chair argues
Should the Fed mandate collateral pre-positioning at the discount window?
Supervisor wants lenders to be ready to access central bank facilities, but formalising pre-positioning has some drawbacks
Moderate US bank stress could lead to global contagion – report
IMF study cites SVB’s collapse, which reverberated across world by pushing up US sovereign credit risk
Credit lines help firms absorb tariff shocks – BIS bulletin
Banks can stabilise economy during crises by offering on-demand liquidity, researchers say
Palestine launches zero interest-rate loan scheme
Monetary authority announces $10m of support for small businesses in Gaza and West Bank
High profits to cushion against bank losses – Danish central bank
Lenders in good position to deal with tariff turmoil, says National Bank of Denmark
Lawsuits looming against ECB’s climate policy, expert says
Banks could go to court over imposition of daily fines related to environmental prudential rules
Hungarian central bank launches anti-cyber fraud campaign
Governor announces five-step campaign to counteract increasing prevalence of scams
A fractured monetary system
US policy is encouraging a transition away from a dollar-led, rules-based order
Sweden moves to improve liquidity provision in resolution
Riksbank and debt office develop “joint approach” to clarify how lenders can source liquidity in crisis
Reflections on the international financial situation
Former IMF head Jacques de Larosière writes that markets are blind to Trump's policy shocks that are fragmenting the monetary ‘system’, causing strain in the eurozone and may result in stagflation
BoE governor calls for closer ties between UK and EU
Bailey says Brexit’s negative effects on trade need to be minimised
Stablecoins impact US Treasury yields – BIS paper
Sector’s continued growth could affect monetary policy transmission, authors say