Financial Stability
Debtor nations face ‘long-term pain’, BdF research finds
Long-term debt issued when rates were higher will create burden, Banque de France paper says
Basel’s cherry-picking toughens IRRBB shock scenarios
European banks want higher outlier thresholds to offset higher confidence level in new standard
US government-sponsored mortgage securities ‘amplify crises’
Paper says dynamic between lenders and Fannie Mae/Freddie Mac not conducive to financial stability
BoJ policy-makers signal end to negative rates
Summary of meeting shows board members see higher chances of achieving virtuous wage-price spiral
Interconnectedness of financial system ‘amplifies climate risks’
Bank of Canada research says funds’ responses to climate shocks could exacerbate related losses
China pulls report on merger of ‘bad banks’ with SWF
Tie-up could help separate government’s roles as regulator and shareholder in managers of bad debt
Italian governor concerned over Russian asset seizure, officials say
Panetta says renminbi has overtaken euro as international currency since Russia invaded Ukraine
Hong Kong court orders liquidation of Evergrande
Decision could lead to complex winding-up process for debt-laden Chinese developer
Minneapolis Fed paper supports ban on enforcing non-competes
New law in Minnesota prevents companies from restricting where former employees can go to work
China’s central bank to set up new credit market department
Unit will be tasked with guiding banks’ lending support for key areas of finance
Faster deposit flows will affect bank runs, ECB paper says
Bindseil and Senner say several factors are increasing size and speed of deposit runs
PBoC announces biggest cut in banks’ reserve ratios for two years
Governor says 50bp reduction will free up 1 trillion yuan into financial system
HKMA proposes easing data-sharing rules between banks
Hong Kong authorities cite need to tackle digital fraud and money laundering more effectively
Wage growth ‘has not impacted US inflation’, says Boston Fed
Study finds pay still has some way to go before reaching a level that would affect consumer prices
RBNZ proposes changes to mortgage regulations for banks
Central bank plans to bring in debt-to-income requirements to reduce financial stability risks
Reasons for refusing mortgages ‘do not explain racial disparity’
Minneapolis Fed’s study challenges explanations given for why people of colour are treated differently
BoK examines South Korea’s post-Covid jobs recovery
Research points to rebound in services and employees’ desire for greater work-life balance
Monetary policy transmission may have grown weaker – Dallas Fed
Research finds countries with slow and fast pass-through rates experience similar demand effects
China revises rules for PBoC’s monetary policy committee
New rules form part of Communist party’s drive to strengthen control over domestic financial sector
Nigerian central bank says it has cleared some lenders’ FX liabilities
Move comes one week after CBN replaces management of three banks for alleged law-breaking
Risks persist in China’s economy despite growth, analysts say
Property sector woes, youth unemployment and falling population all cited as long-term challenges
Local preferences affect US bank lending to minorities – research
Ethnic minorities’ credit access is affected by stakeholders, NY Fed paper finds
RBI deputy calls on government to tackle bankruptcy backlog
Courts are struggling to deal with caseload, putting progress on credit quality at risk, official says
Millions of South Korean workers face AI replacement – research
Workers with higher incomes and education are more at risk, Bank of Korea paper says