Research
GDP growth only raises profits for some banks – Bank of Italy paper
Banks with large loan portfolios benefit from GDP growth – researchers
Competitive housing markets fostered risk taking before crisis – IMF research
In areas with higher price volatility institutions lowered lending standards
Fed paper builds dynamic factor model for nowcasting
Model produces “reasonably good” estimates of Ecuadorian GDP and outperforms other models
IMF paper praises Chilean central bank’s forward guidance
Central bank’s monetary policy predictability and efficacy was “quite high”
Financial literacy of Italians below G20 average – Bank of Italy
Less than half of survey respondents are able to calculate a simple interest rate
Higher capital ratios trade growth for stability – Philadelphia Fed paper
Better capitalised banks reduce lending rates, researcher says
KYC regulation impinging on financial inclusion – Sarb
Fintech firms could help under-served customers through a “digital identity”, which will allow banks to identify customers without them having to visit branches in person
ECB’s QE has dampened volatility in Eastern Europe – BoI paper
End to ECB asset purchases might increase volatility in EU-6, researchers say
NY Fed paper: ‘replacement hiring’ affects productivity wage gap
Replacement hiring can explain much of the gap between wages and productivity, authors say
Bank of Finland paper calls digital currency a ‘fallacy’
Crypto assets highlight how poorly understood money is today – BoF official
Low rates contribute to higher deposits in Denmark
Bank deposits amount to 60% and household deposits 45% of GDP
NY Fed research ‘stress tests’ household balance sheets
Authors say it is “crucial” to track household leverage; vulnerability in the US “remains elevated”
BIS paper outlines lower-bound risk model
Model estimates probability of hitting ELB, helping to guide policy
Businesses less willing to accept cash payments – Atlanta Fed
Increasing number of businesses are becoming reluctant to accept low-value cash payments
Money matters for macro fluctuations – Fed paper
Working paper says previous research by Schularick and Taylor may have been flawed
Employer-employee loans can cut credit risk - Minneapolis Fed article
Research looks at Minnesota scheme
Richmond Fed economists design bank resolvability score
Score could help make complex living wills easier to interpret, authors argue
Issuing “foreign-law” debt can cut costs in times of crisis – ECB paper
Eurozone countries’ bonds issued abroad showed major premiums during debt crisis – researchers
Fed policy’s global effects differ in booms and busts – BIS paper
Monetary policy appears to impact global bank lending differently depending on the “regime”
Leverage ratio disincentives clearing – BoE paper
Leverage ratio appears to have made some banks less willing to take on new clients
‘Living wills’ have reduced implicit subsidy – Fed paper
Higher cost of capital implies resolution measures have reduced ‘too big to fail’ subsidy, authors say
Fed paper questions value of debt as crisis indicator
Asset prices and current account balance more important, author finds
Central bank digital currency of no benefit to financial stability – RBNZ research
CBDC could make New Zealand’s banking sector more susceptible to spillovers
Woodford shows finite horizons matter when modelling
Removing rational expectations can change key economic results, says Michael Woodford