Financial Stability
Stress levels rising: investment funds and the Covid-19 shock
Extreme market stresses due to Covid-19 are underscoring the central role non-banks play in crisis contagion, as in 2008. Were regulators better prepared this time?
IMF gives Chile access to $24 billion credit line
Country is exposed to major risks from pandemic despite strong economic record, Georgieva says
BoE paper explores global financial cycles since 1880
Cycles in credit and housing have become more pronounced, but only for some economies
Bangladeshi governor’s term extended amid pandemic crisis
IMF approves aid worth 50% of Bangladesh’s quota and says country faces major challenges
Fed lifts lid on ETF purchases
Biggest holding is of a BlackRock ETF, the same firm managing the purchases
Time for mandatory climate disclosures is now – Carney
Former BoE chief says Covid-19 provides an opportunity to introduce comprehensive disclosures, as RBNZ governor says any delay could disrupt economic prosperity and social cohesion
Sama injects $13 billion as banks prepare to reopen
Saudi central bank directs financial firms to “gradually return” to normal operations
Campos Neto on reforming Brazil’s economy amid Covid-19 distress
The Central Bank of Brazil governor speaks about how Brazil is managing fallout from the coronavirus pandemic, the benefit of large reserves, his plans to deploy emergency asset purchases and why he favours extending the IMF’s SDR funding
Riksbank launches new financial vulnerability metric
“Systemic risk indicator” is designed to track overall financial stability across market segments
Fed can boost power of fiscal spending in communities – Harker and Rajan
Targeted fiscal policies are needed to address concerns over inequality, they say
ECB’s Enria unsure banks will dip into capital buffers
Anxiety over investor and rating agency reaction may limit banks’ use of Covid relief measures
NGFS proposes five steps to integrate climate risks into supervision
Guidelines follow ECB’s public consultation on adding climate risks to its supervisory work
Crisis exposes flaws in US financial stability regime
Former Fed chair Janet Yellen urges Congress to reform US’s financial stability framework, after failure to curb corporate leverage in the lead-up to lockdown
IMF agrees Ukraine aid after government backs banking reform
Move is major setback for billionaire accused of harassment campaign against central bank
OCC chief resigns immediately after finalising controversial regulation
FDIC abandons support at final hour after facing strong criticism from Democratic senators
Sarb’s Kganyago ‘concerned’ over sovereign-bank links
Financial stability report warns banking sector is exposed to overstretched government finances
French governor says ECB could directly fund loans
Villeroy de Galhau also calls for flexible emergency purchases but rules out yield curve control
Iranian central bank announces takeover of militia-owned banks
Five banks owned by Revolutionary Guards to be taken over by country’s largest lender
ECB warns banks face significant losses due to Covid-19
Central bank stresses fiscal and monetary interventions have contributed to stabilise markets
ECB minutes hint at further easing measures
Governing council discussed expanding size and scope of pandemic purchase programme
BoE paper lays foundation for ‘system-wide stress test’
Economists develop framework linking banks, investment funds and hedge funds
Swedish financial stability risks rising, Riksbank says
Without new policy measures, banks’ losses may hamper credit supply, Riksbank warns
ECB to integrate climate risks into supervision
Climate change is pushing banks to adapt risk management, disclosure, governance and business strategies
US firms may need big investment cuts - Chicago Fed paper
Cutting investment may be public corporations’ most attractive response to pandemic - researchers