Financial Stability
US mutual funds' liquidity risk on the rise – Boston Fed paper
Ratio of illiquid assets to net assets increased from 2009 to 2019, researchers find
‘Market clustering’ can destabilise equity prices – DNB paper
Researchers present new measure to examine impact of trading overlap on equities
DNB stresses risks stemming from financially fragile households
Central bank study shows more than 14% of Dutch population could not raise €2,000 in an emergency
Better IT protected banks during financial crisis – IMF paper
NPLs were 10% lower in banks with stronger IT infrastructure, research shows
Bad banks work, but not in isolation – BIS paper
Researchers study what factors lead to successful “asset segregation” schemes
ETFs are exposing EMEs to global capital flows – Fed paper
Sensitivity of ETF flows to global financial conditions is 2.5 times higher than mutual fund flows, researchers find
EU council may cut margin haircuts for CCP resolution
Proposals would close avenues for regulators to dip into non-defaulting members’ initial margin
BoE says no-deal Brexit now unlikely
Bank of England ends additional liquidity supervision after passage of withdrawal agreement
Sovereign debt needs strong collective action clauses – ECB paper
CACs with bond-by-bond voting fail to prevent creditor holdouts, researchers find
Bank of Italy and regulator agree joint cyber security strategy
New approach will aim at guarding specific types of financial market infrastructure
Carney defends financial sector’s record on climate action
Finance ready to flow to green projects if politicians take lead, BoE governor says, but other speakers on WEF panel argue firms are not doing enough
Cyber attack could freeze liquidity in US financial system – NY Fed paper
Attack on one bank could affect more than a third of banking system’s assets, researchers warn
Central banks must take lead on climate disclosures – PBoC’s Ma
Reserve managers’ stances send important signals to the financial community, says Ma Jun
Fiji’s central bank faces climate change challenge
Governor notes disaster risk management is evolving at rapid pace
Brookings paper examines impact of governance structures on use of CCyBs
Countries with strong governance mechanisms are more likely to use the macro-prudential tool, researchers find
ECB calls for changes to German draft CCP recovery law
Law should be rewritten to provide more transparency on Bafin’s procedures and approach, ECB says
Non-bank growth slowed in 2018, says FSB
Riskiest forms of non-banks still growing, but overall assets went into reverse in 2018
Climate risk models not up to scratch, warns BIS report
New research highlights models’ inability to accurately anticipate climate risk; says central banks must not become “climate rescuers of last resort”
UK government names Carney as green finance adviser
Departing BoE governor will advise UK prime minister at UN climate conference in November
Bank of Spain unveils first strategic plan
Hernández de Cos’s priorities include better macro-prudential policies and increased trust
UK regulators set new deadlines for Libor transition
Working group sets out priorities for 2020 as Libor deadline looms
Cyber security suffers from inconsistent approaches, says IMF’s Lipton
Emerging markets struggle to implement international recommendations, expert adds
European banks must improve ‘big data’ practice – EBA report
Current regulatory framework is adequate but banks must work hard to improve trust, EBA says