Financial Stability
El-Erian on Covid-19 policy risks, ‘zombie’ markets and central bank capture
Former Pimco chief says Fed move into high yield is a step too far, new rules needed on leverage and false liquidity, and narrow window emerges for central banks to shed some of their policy load
Beware of capital: much ado about nothing?
Capital increases can be offset by asset valuation, provision and income recognition forbearance
Indonesia gains ‘second line of defence’ from $60 billion Fed repo
Bank Indonesia secures repo with NY Fed to boost dollar liquidity and shore up rupiah
IMF doubles emergency lending capacity
Fund considering other options including SDR issuance, says Kristalina Georgieva
World Bank says sub-Saharan Africa destined for first recession in 25 years
Growth could fall as low as -5.1% as largest economies struggle with Covid-19 repercussions
Apra suspends bank licence issuance
Prudential regulator will continue to review applications while six-month suspension is in place
ECB takes unprecedented steps to preserve credit provision
Central bank accepts state-guaranteed loans as collateral, reduces haircuts, and raises limit on unsecured bank bonds in collateral pool
Thailand’s central bank throws support line to SMEs
Businesses will be eligible for new financing facility and payment holiday
Riksbank picks ECB’s Tips for instant krona settlement system
Central bank preparing system for round-the-clock settlement in Swedish krona
UAE president replaces central bank governor
Veteran banker appointed shortly after central bank unveils large-scale emergency finance package
Is there a dollar funding squeeze in China?
China could benefit from joining the Fed’s dollar swaps network but political obstacles bar the way
Fed eases capital restriction on large US banks
US repo rates stray into negative territory as investors make massive flight to safety
Dutch former governor attacks PM for blocking eurobond
Nout Wellink says Netherlands must prevent further debt crisis in Southern European countries
New Zealand banks agree dividend suspension with RBNZ
Central bank launches new funding facility and asks banks to stop redeeming non-CET1 instruments
Bank of Portugal removes limits on credit card use
Central bank issues new regulation to encourage the use of electronic payments
Accounting for losses during a pandemic
US banks get green light from senators to use loan loss accounting methods widely criticised following 2008 crisis
Cares Act a very good start, but US may need bigger fiscal response – Rosengren
Boston Fed president warns pandemic could have significant impact on real estate market
Qatar Central Bank unveils mobile payments system
Central bank launches “new and safe method” for electronic payments
UK banks halt dividend payments after BoE piles on pressure
PRA asks largest lenders to suspend payments until the end of the year
Fed opens dollar funding to majority of central banks
New repo facility aims to ease strains caused by global flight to the safety of dollars
Turkish central bank unveils emergency measures
Turkish central bank official makes optimistic prediction despite evidence of mounting problems
Failure to curb ‘binge borrowing’ could worsen downturn – Yellen
“Excessively” high corporate borrowing may trigger a “wave of corporate defaults” in the coming months, former Fed chair warns
‘Ostrich approach’ to financial stability is a mistake
Denmark’s top supervisor, Jesper Berg, says scaling back IFRS 9 would be a costly error, despite the economic challenges raised by Covid-19