Financial Stability
‘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
Georgieva calls for radical policies as IMF faces unprecedented demand
IMF head says rich countries must increase financing as nearly 80 countries request $50 billion in aid
ECB asks eurozone banks to stop dividends
Bank of Israel also asks banks to reassess the distribution of dividends
Sarb consults on Covid-19 regulatory easing
Central bank mulls lowering Pillar 2A capital requirements
US unemployment could hit 32%, St Louis Fed says
Unemployment insurance claims see greatest ever post-war rise
Concentrated firepower: central banks must expand their arsenal
Philip Turner argues central banks should be prepared to go further to avoid economic and financial collapse
Basel III reforms pushed back to buy time for coronavirus response
Basel Committee chief says banks and supervisors need operational capacity to cope with the virus shock
Brazil unveils measures to boost liquidity
Central bank estimates action will boost credit supply by 1.2 trillion reals ($238 billion)
IMF releases first emergency Covid-19 funding to Kyrgyz Republic
Country is battling with balance-of-payments gap of $400 million
Fed’s balance sheet could see massive further growth
Response to coronavirus has already pushed Fed’s holdings up to record levels
Swiss central bank launches unlimited refinancing facility
SNB asks federal government to reduce countercyclical buffer to 0%
ECB paper looks at euro exchange rate shocks
Exogenous exchange rate shocks having more impact on eurozone inflation, researchers find
Economists must study ‘certainty shocks’ – Bundesbank paper
Policy-makers must distinguish between shocks which raise or lower certainty, researcher says
PBoC: over 1,000 Chinese finance workers infected by Covid-19
Deputy governor says 42 employees of finance firms have died because of coronavirus
Riksbank steps up pace of crisis support programme
Swedish financial regulator says publicly-quoted firms must stop equity payouts
RBNZ lowers banks’ core funding ratios
Central bank reduces ratio to 50% to support government’s crisis lending scheme
US dollar has become ‘risk barometer’ – BIS economists
Role of dollar has changed since 2008 due to major changes in global financial sector, authors say
UK lenders do little to account for extreme weather risks – BoE paper
Banks barely adjusted mortgages in the wake of severe flooding in 2013–14, authors find
Fed commits to unlimited bond purchases in massive new programme
FOMC announces radical new measures and calls on other policy-makers to act aggressively
US regulators offer more guidance on loan restructurings
Any modified loans remain eligible collateral for discount window, Fed says
China will suffer recession, say Bank of Finland experts
Economic policy response has been fragmented and banks may not respond to PBoC incentives – research
The dawn of a safer and sounder European banking sector
Implementation of two pillars of banking union has led to significant improvements in the safety and soundness of the European banking system
New York Fed to offer $1 trillion per day in repo funding
Move sends message the Fed stands ready to meet any increase in funding demands over coming period