Financial Stability
Almost all central banks run stress tests on lenders
Most respondents say they conduct tests more than once a year
Housing markets worry high income countries’ central banks
Middle income countries point to inflation and cyber crime as sources of risk
Powell gives hawkish speech at Jackson Hole
Fed chair warns monetary policy could do too little or too much
Most central banks say cross-border cyber co-operation is good
Respondents from upper-middle income countries most likely to say co-operation could improve
IMF modifies deal with Argentina
Fund disburses $7.5 billion ahead of elections despite finding government failed to meet some targets
BIS paper highlights costs and benefits of crypto regulation
Decision to regulate needs to be backed by data and clear frameworks, authors say
Most central banks report rise in cyber attacks
Majority say they co-operate well with other agencies on cyber risks
CPMI-Iosco report surveys CCP tools for ‘non-default losses’
Losses from investment risk or cyber attacks could threaten a CCP’s survival, report says
Generative AI has ‘broad systemic implications’ – IMF
Economists argue regulators need to take action now to mitigate risks
Most central banks say AML/CFT co-operation is good
Small minority of institutions face problems working with domestic or foreign partner agencies
Digitalisation has complex impact on monetary policy – BoC paper
New technologies could affect policy transmission, communication and data tools
BoE researchers call for more advanced stress-testing techniques
Survey finds “great strides” in modelling but calls for greater complexity and feedback loops
High income countries’ central banks more likely to say AML/CFT risks are rising
Majority of institutions from middle income countries say money laundering risks have not risen
Dallas Fed finds emerging markets insulated against US rate rises
Proactive rate rises, transparency and accumulated FX reserves helped shield economies
Central banks in high income countries less likely to want NBFI reform
But many central banks in middle income nations want regulatory changes
Bank resolutions averaged 1.8 cases in last decade – central banks
Lower-middle income countries report higher mean number of resolutions
Most central banks operate in jurisdictions with deposit guarantee schemes
Few operate their country’s DGS, and some are working to reform schemes’ design
FDIC chair promises stricter rules for mid-sized banks
Gruenberg says regional banks will need better resolution plans and more long-term debt
Financial Stability Benchmarks 2023 charts
Take a deep dive into the Financial Stability Benchmarks charts, which have just been released for 2023
Reserve requirements and countercyclical buffers are most common macro-pru tools
Dynamic provisioning and limits on credit growth are least-used measures
Bank of Russia raises rates in emergency meeting
Board says domestic demand is boosting depreciation’s effects as Putin adviser criticises governor
Europe unlikely to see major gas shortage this winter – research
Risks remain if alternative sources of natural gas falter, says Fed economist
Financial stability resources are sufficient, most central banks say
Some say they need to improve access to data, training and specialist staff
Audit of Lebanese central bank reveals huge shortfalls
US, UK and Canada place personal sanctions on ex-governor Salameh