Central Banking
Stress-test results reinforce need for capital review – RBNZ
Under very severe scenario, banks need significant capital injections
Action needed to avert Latin American banking crisis – report
Emergency measures may mask growing solvency problems, institutions warn
Moral mandates better suited to ESG adoption than financial goals – panel
Lack of liquid green bond markets limits a wider adoption of ESG investment strategies
Fed presents two severe stress scenarios to test Covid risks
Limits on share buybacks and dividend payouts may be extended as stress tests emphasise risks
Deeper EU capital markets will improve risk sharing - BdF paper
Researchers present new methodology to estimate cross-border financial risk sharing in the EU
China’s CBDC could change global reserves, panellist argues
A digital yuan, if accessed widely, could change the reserve currency landscape, policy-makers say
Carolyn Wilkins announces departure from the Bank of Canada
Deputy governor who led emergency asset purchases says BoC “is in good hands”
IMF staffers warn of looming sovereign debt crises
Governments and markets should agree to extend bond maturities, IMF says
EU needs single anti-money laundering body, EBA says
EBA calls for EU to include investment and crypto-asset firms in scope of tougher AML/CFT laws
Bank of Spain paper warns over eurozone’s public debt
Individual eurozone countries likely to be more vulnerable due to recent debt increases, paper says
Swift announces major changes to system
Cloud-based platform will allow end-to-end transactions visibility and innovation by firms, Swift says
Brazilian central bank interrupts rate-cutting cycle
Monetary policy committee says space for further monetary stimulus “should be small”
Ethiopia launches new high-denomination banknote
New 200 birr note aims to curb inflation and corruption, central bank says, as Covid-19 slows growth
ECB changes largest eurozone banks’ leverage ratios
Latest emergency response to Covid-19 should raise banks’ leverage ratios by about 0.3%, ECB says
FOMC signals rates likely to stay on hold until 2023
Latest Fed projections say inflation likely to stay below target for several years
Covid-19 will not result in CBDC issuance, say central bankers
Policy-makers think changes in payment behaviour will be temporary and CBDC research will take time
Diversification makes gold shine brighter – panellists
Negative sovereign yields boost gold’s attractiveness among reserve managers
Innovation hubs should help central banks update regulation – panellists
Regulation should be transparent enough for fintechs to understand what requirements must be met
People: Shelton unlikely to have enough votes for Fed role
Judy Shelton’s nomination in doubt; Fed appoints new director of monetary affairs; Bermuda Monetary Authority promotes insurance director
New Zealand becomes first country to mandate climate risk disclosures
Several governments are working to enshrine TCFD framework in law
Investment fund sector needs stress tests – Bundesbank paper
Researchers say their model finds investment firms can magnify losses from global asset price shock
EM reserves ‘crucial’ in mitigating Covid-19 outflows, says Mauritius governor
Foreign exchange buffers helped to mitigate volatility in financial markets
BIS research maps out links between banks and non-banks
First attempt at global mapping reveals significant scale of interconnections
Reserve managers weigh options to escape low yields
Longer-duration and emerging-market bonds may offer the way forward to portfolio managers