Financial Stability
IMF concerned about Tanzanian NPL levels
Addressing financial sector vulnerabilities should be a “priority”, as high NPL levels start to restrict lending to the private sector
Reforms helped oil states weather shock – Kuwaiti governor
Governor says banks may not have fared so well without regulatory reforms; he says operational risks rules may need adjustment in face of cyber attacks
Malaysia’s Ibrahim warns of costs of not turning digital
Bank Negara governor outlines plans to push consumers towards e-payments, as the cost of cheque processing weighs on the economy
Russian central bank becomes sole shareholder in failed bank
Central bank injects approximately $7.7 billion into Otkritie
Financial distress in the US is concentrated in a small percentage of consumers
Around 10% of consumers account for 50% of all distress events, research finds
Mortgage modifications were key to cutting Irish NPLs
Scale of modifications was larger than previously thought, research finds
Quick action needed to tackle housing busts – RBNZ paper
Paper studies housing busts around the world and how best to respond to them
High private debt imperils financial stability in Norway, research finds
Households most at risk of shrinking their expenditure account for 50% of private consumption
Fed finalises new market benchmarks
Three transaction-based alternatives to US dollar Libor will launch in 2018
FCA mulls use of AI to tackle money laundering
Crime unit head says the financial regulator views machine learning as a complement to human judgement, not a replacement
IMF warns Chinese banks are undercapitalised
The IMF report highlights the insufficient capital of Chinese banks, conflicting tensions of growth and stability, and the financial system’s complexity
Fed proposes sharing more information about stress tests
Proposal includes insights about how the regulator estimates hypothetical losses
Basel III changes set to create big winners and losers
Capital hit for G-Sibs ranges from 28% drop to 43% jump, quantitative impact study reveals
Mario Draghi confirms Basel III is complete
Governors and heads of supervision grant final approval to the amended Basel III framework, but the parties fail to agree on sovereign asset treatment
Loss absorbency is a challenge to implement – BoE’s Gracie
Delays in other jurisdictions are making it hard to roll out final rules for total loss-absorbing capacity, says executive director
BIS paper examines how banks use credit default swaps
Banks use CDS for position taking as well as insurance, but there is little evidence of their use to circumvent capital rules
FSB praises ‘good progress’ on S Korean resolution framework
Peer review finds additional work to be done on filling gaps and strengthening supervision
Flexible exchange rates vital to autonomy – Mexican deputy
Flexible exchange rates should not be abandoned in times of stress, says Guzmán, encouraging policymakers to increase the efficiency of frameworks