Macro-prudential
Macro-pru is no panacea
Many central banks need better macro-prudential policy frameworks and communication at a time of rising political interference
BIS paper tracks new channel for funding ‘dry-ups’
A squeeze in one market can spill over to institutions with no direct exposure, authors find
Fed floats new stress test reforms after industry pressure
Previous proposal drew criticism from major global banks
FDIC could reduce resolution costs by 17% – Bank of Canada paper
Eliminating uncertainty over auction process could reduce multiple bidding, researchers say
Asset bubbles play role in macro-prudential policy – IMF research
Their size may determine optimal tax levels to address credit imbalances
China changes mortgage rates anchor to curb housing risks
Home loan rates may be set higher to avoid real estate bubbles as central bank seeks lower rates for rest of the economy
Interbank rate uncertainty raises cost of credit – ECB paper
“Novel measure” helps authors judge effect of disruptions to interbank markets
Raising CCyBs could have ‘greatly mitigated’ 2008 crisis – St Louis Fed paper
Policy-makers could have avoided a fall in aggregate consumption of 21%, researcher finds
BIS paper proposes network model of global contagion
Authors create a network of CDS linkages to assess contagion risk in the financial system
UAE central bank hails new financial stability remit
Financial stability report notes NPL levels have risen, but banks are also making larger provisions
Bulgaria a case study in effective prudential policy – BIS’s Carstens
Country was early adopter of macro-prudential policy, which helped manage capital flows, Carstens says
Fed weighs reforms to stress tests
Powell says tests must evolve; Quarles and Fed watchers present potential improvements
‘Fintech shadow banks’ shaping global credit – Amit Seru
Regulators need to pay more attention to shadow banks, Stanford professor says
RBI steps up liquidity support amid government credit push
Government launches credit guarantees for public sector banks that lend to non-bank financial firms and announces fresh recapitalisation
RBNZ accepts criticism on supervision of CBL Insurance
The insurer was placed into full liquidation in November 2018
BoE’s Cunliffe says housing tools have worked
More evidence has emerged on “borrower-based” tools since they were first tested, deputy says
Israel could be vulnerable to global shock – central bank
Worsening liquidity conditions in local markets could amplify a global crisis, Bank of Israel says
RBI: bank balance sheets appear to be on the mend
Turbulence of 2018 may have forced non-bank finance firms to face up to risks, says central bank
Switzerland should tighten macropudential policies – IMF directors
Authorities should strengthen financial regulator and address real estate risks, IMF chiefs say
Illiquid funds could pose global systemic threat – Carney
Some funds are “built on a lie” and market-based finance is bringing new risks, BoE governor says
CNB raises countercyclical buffers as risks build
The central bank stress-tests not only the financial sector but also households and the government
BoE makes climate risk a hot topic for banks
Financial institutions must entrust oversight of climate risk to named individual under senior managers regime
ECB paper looks at short-term costs of higher capital ratios
Monetary policy should cushion blow caused by moving to higher capital requirements – researchers
RBNZ review lends support to loan-to-value limits
Macro-prudential tool has been helpful in promoting financial stability, study finds