Financial Stability
PBoC cuts key lending rates
Move follows unscheduled cut to two other rates after official data showed growing slowdown
Earnings in upper-middle income economies outstrip high income peers
Financial stability staffing tends to match jurisdiction’s income level
Most central banks lack primary oversight of NBFIs
Many institutions capable of regulating non-banks, but just a few solely exercise such powers
Book notes: The Fed unbound, by Lev Menand
Instead of the Fed expanding its tasks to meet shadow banking needs, this book calls for charter-like oversight of NBFIs
A quarter of central banks have insufficient financial stability powers
Some respondent institutions need new powers urgently
Middle income countries more likely to report rising NPL levels
Most high income respondents say NPL levels have fallen in last five years
Fed paper explores information problems in financial panics
Tight liquidity can cause investors’ beliefs to become “systematically divorced from fundamentals”
Banking resolutions are rare events in most countries
Two jurisdictions account for 77.9% of resolutions reported by sample
The PBoC, real estate debt and financial stability in China
Central bank policy-makers are restricted in terms of capacity and space by their efforts to manage the nation’s property bubble amid declining growth
Reserve requirements most commonly used macro-pru tool
Responses show differences in measures favoured by high and middle income economies
Ukraine’s wartime economy faces possible crisis
Foreign donors must increase financing of Ukrainian government, NBU ex-governor and current government adviser argue
Malaysian central bank plays down impact of potential data breach
BNM says Malaysia’s payment system remains “safe and secure”
Most central banks do not want more macro-pru powers
But minority of benchmark participants want governments to adopt measures in use elsewhere
‘Very little support’ for a US Treasury clearing mandate – Isda
Dealers and clients prefer carrot to stick in efforts to improve Treasury market liquidity
Central banks rarely administer deposit guarantee schemes
Lower-middle income countries less likely to have such schemes
Richer nations less likely to have central banks as sole macro-pru authority
Respondents from lower-middle income countries more likely to be only macro-prudential body
Activity-based regulation will not guarantee level playing field – BIS paper
Authors propose framework to clarify use of entity- and activity-based regulations
Central bank boards often used for stability decisions
Institutions from high income countries most likely to give stability remit to boards
UAE central bank issues guidance on politically exposed persons
Measures build on AML/CFT requirements following FATF greylisting in March
RBA hits out at further delay to new clearing system
Blockchain-based system for Australian Stock Exchange won’t be operational until at least late 2024
More depositors in Henan and Anhui to have frozen funds repaid
Chinese authorities announce repayments for depositors with savings of up to 250,000 yuan
Taiwan governor says ‘no need to worry’ about capital outflows
Yang Chin-Long says Taiwan has sufficient foreign reserves to handle potential FX volatility
BoI reshuffles banking supervision department
Heads of division will switch positions in a bid to foster new thinking