Financial Stability
Bank of Canada plans new emergency liquidity facility
Facility designed in response to new threats, such as cyber and extreme weather events
RBI to resolve first non-bank under revised bankruptcy code
Move could set precedent for wider financial sector clean-up as fallout from liquidity crunch continues
Climate risks may be uninsurable – DNB’s Elderson
NGFS chairman calls on the implementation of a carbon tax to help mitigate these risks
Eurozone should look at raising capital buffers – ECB paper
Impact on growth of 50-basis point rise in counter-cyclical buffers would be limited, researchers say
Riksbank warns of rising financial stability risks in Sweden
Global economic slowdown and continued low rates may encourage greater risk-taking
Australia’s AML regulator takes action against Westpac
Large lender found to have breached AML regulation millions of times, including 12 customers linked to child exploitation payments
RBNZ sanctions bank over capital calculation errors
Bank of New Zealand appears to have misreported risk weights for several years
US market liquidity deteriorated in 2019, Fed warns
Frequency of equity market flash events has increased significantly since 2018
Irish central bank publishes sanctions guidance
Some banks still expect good settlements despite “obstructionist attitude”, senior regulator says
Das: RBI toughening its supervisory approach
Central bank is focusing on developing specialist supervisors after financial instability
Debelle analyses impact of mortgage arrears
Mortgage arrears are at historical low, Australian deputy says; trends in Western Australia could be informative in a downturn
Dutch governor warns of unconventional policy hazards
Knot also argues for expansionary fiscal policy and symmetrical inflation target
FSB warns gaps remain in resolution frameworks
Issues remain for central counterparties, global banks and insurers, report finds
EBA’s Campa: reduce Pillar 2 charges to offset output floor
Bankers plead for smaller capital hit and more predictability on implementation of Basel III
Powell says Fed is increasing work on climate change risk
“Climate change is an important issue, but not principally for the Fed,” Powell says
France’s ACPR will not comply with Eiopa Brexit recommendation
ACPR is concerned over risks shifting from UK to France
Policy-makers should update cyber regulations – Bank of Canada official
Greater collaboration and information-sharing is required to strengthen reliance, Filipe Dinis says
Bank of Israel tells banks to close as rocket attacks continue
Supervisors mandate “emergency procedures” as clashes escalate in the Gaza Strip
Excess of cash in Solomon Islands banks driven by high rates – IMF
Basket exchange peg is ‘appropriate’, says IMF, but lending rates remain too high
Policy-makers must re-examine financial stability tools – Fed official
Capital regulations may not reflect increased risks from low-rate environment, Rosengren says
ECB’s Mersch shows support for European deposit insurance scheme
Europe must look to create a stronger integrated market, he says, while urging European governments to do more with regard to fiscal policy
Iranian central bank imposes AML controls on lenders
Local reports say FATF has threatened Iran with blacklisting, but hardliners are blocking reforms