Central Banks
The American way: a stress-test substitute for Basel’s IRRBB?
Bankers divided over new CCAR scenario designed to bridge supervisory gap exposed by SVB failure
RBNZ seeks views on design of ‘digital cash’
New Zealand central bank continues proof-of-concept work on “private and secure” CBDC
Generative AI’s impact on inflation unclear – BIS study
Inflation could worsen if people anticipate jump in productivity, authors say
Schnabel: ECB could replace central forecast scenario
ECB should consider using alternative scenarios and dot plots to convey uncertainty, official says
Banks’ AI models are flawed – Basel Committee chair
Pablo Hernández de Cos says risk of AI model misspecification is “incredibly high”
Bank of Korea considering forward guidance reform
Governor Rhee Chang-yong sees merit in revealing more information to public
European banks less likely to lend to green firms, says ECB paper
Public guarantee loans can help lower-carbon firms access bank credit, research finds
Governance Benchmarks 2024 report – central banks’ core processes
The benchmarks shed light on central bank profitability and distributions, independence and more
BoE’s digital securities sandbox to lead to new regulatory regime
Five-year project to open for applications this summer
ECB caps remuneration rates for eurozone government deposits
New rate to also apply to non-monetary policy deposits, as ECB shrinks balance sheet
FSB proposes actions to make margin calls safer
Margin calls can mitigate risk but may also create spikes of liquidity demand, report says
Vietnam’s central bank lends $24 billion to troubled bank
State Bank of Vietnam offering liquidity lifeline to lender mired in financial scandal, Reuters reports
Fed policy-makers disagree over risks
Williams and Goolsbee say policy is restrictive but Logan takes different view
High interest puts pressure on US cattle farms – research
Wildfires and rising input prices are exacerbating factors, Kansas City Fed research says
‘Stretched’ bond markets vulnerable to instability – IMF
Expectations of soft landing have compressed spreads and could lead to sudden repricing, report says
Central banks need caution in easing policy, IMF says
World Economic Outlook says most indicators still point to soft landing
CBDCs could increase financial instability, Fed paper says
Central banks should consider price and quantity tools to mitigate risks, researchers say
Maximising the impact of banknote communications
Antti Heinonen highlights the ongoing evolution in how central banks talk about their banknotes