Financial Stability
BIS paper pins down causal impact of capital flows
Study based on confidential BIS data finds capital controls can help prevent overheating
China mandates deposit insurance labels
PBoC goes further in implementing deposit insurance policies to mitigate risk
RBI adapting to ‘increasingly complex web’ of non-banks
Deputy governor highlights “significant change” to RBI’s regulatory approach
BoE will not use climate stress tests to set capital buffers – Bailey
Andrew Bailey reveals new details of tests, with launch set for summer of 2021
MAS secures more financial crime convictions
Nine individuals convicted as a result of MAS investigations over 18-month period
ECB paper looks at interest rate-growth differential
Several factors are likely to push differential up for some eurozone countries, say researchers
World’s biggest IPO suspended after PBoC intervenes
Ant Group market debut suspended after Chinese authorities interview Jack Ma
Tunisian central bank forces state to cut spending plans
Prime minister abandons plan to widen deficit to 14% of GDP after governor refuses to finance it
Dollar funding drives global house price movements – BIS paper
Non-US banks often depend heavily on dollar funding to issue mortgages, authors show
Egyptian central bank fires head of largest commercial lender
Governor holds emergency meeting with lender’s board but nature of problems is unclear
Paper offers method for evaluating machine learning models
Bank of Spain paper looks at cost and benefits of ML models for predicting credit defaults
Bundesbank paper looks at consequences of weak supervision
Supervisors seen as less likely to intervene give banks incentive to stay undercapitalised - researchers
Firms still making too few climate disclosures, task force says
TFCD report highlights rapid rise in firms backing disclosure, but says fewer are taking action
Eurozone credit tightened in Q3
Worsening economic outlook boosts borrowers’ credit risk, says the ECB
Business failures will impact bank balance sheets – RBA’s Bullock
Central bank forecasts volume of business failures to rise with the removal of support
Regulators fine Goldman $2.9 billion over 1MDB
DoJ says bribes were largest it had discovered, as UK regulators fine US bank $126 million
Policy-makers should develop blockchain standards – panellists
Standards should ensure systems can communicate with one another, experts say
Georgia’s Gvenetadze on implementing an aggressive reform agenda
The National Bank of Georgia governor speaks about efforts to improve monetary policy, financial infrastructure, financial literacy, transparency and ESG
Thai economy is like “patient in intensive care” – governor
Central bank extends debt relief for SME debt relief as political unrest mounts
Bank of Italy paper compares US recession-forecasting methods
Measure of uncertainty out-performs even yield curve in short term, researchers say
ECB paper presents new measure of underlying inflation
“PCCI” measure does not exclude HICP items and gives timely notice of turning points, authors say
Quarles: policy-makers have ‘work to do’ on non-bank fragilities
FSB chair outlines areas where non-banks may have amplified the Covid-19 shock
ECB paper looks at eurozone money markets
Policy-makers must ensure smooth functioning of secured money markets, researchers say
Malaysia’s central bank to launch climate taxonomy in 2021
Information asymmetry among financial firms is hampering green lending, assistant governor says