Risk
Central banks typically employ detailed business continuity plans
But institutional risk appetite is less commonly included, especially in Europe
ECB lists climate and tech risks as supervisory priorities
SSM says strong governance and geopolitical risks will also be among key areas of focus in 2025–27
Direct system breaches are top cyber risk
Main threats vary by cyber security staffing and economic groupings
Trump 2.0 bank supervision: simpler but no soft touch?
Republican FDIC vice-chair Travis Hill wants more focus on financial risk instead of process
Over 60% of risk departments face staff and resource shortages
Teams that face hiring challenges generally have to make do with smaller risk departments
Barr’s Fed exit likely to delay, but not destroy, Basel III
Market risk, op risk and leverage ratio all in the sights of Barr’s potential successors
Accounting for banknotes
Three leading experts on central bank finances debate the appropriate treatment of currency
Cambodia allows banks to handle stablecoins and backed cryptos
Central bank sets up legal framework to regulate cryptocurrency activities
Madagascar’s governor on targeting M3 over inflation
Central Bank of Madagascar head Aivo Andrianarivelo speaks about introducing an interest rate corridor, diversifying from dollars to gold, using instant payments to bolster inclusion and drawing on IMF sustainability funding
IMF develops stress test for central bank balance sheets
Framework designed to help risk teams determine appropriate profit distributions
Repo and FX markets buck year-end crunch fears
Anticipations of changes to the Fed’s reverse repo programme contributed to easing balance sheet pressures
CNB’s Aleš Michl on tackling inflation, Friedman’s legacy and ditching DSGE
The Czech governor speaks about policy mistakes, targeting M2, diversifying into equities and gold, building new models and ending interest payments on minimum reserves
ECB raises capital requirements for eurozone banks
Geopolitics and macro-financial shocks remain top priority for next three years, annual review states
Fed stress-testing operational readiness of discount window
Experts say consultation on improved ops should be accompanied by focus on willingness to borrow
Italian lenders do not under-report default risks – central bank
Commercial lenders’ internal rating-based systems “less conservative” than central bank’s
Central banking amid uncertainty and Trump 2.0
Deglobalisation set to challenge the central banking orthodoxy of the past 40 years
OECD highlights ‘resilient’ economies beset by risks
Geopolitics, high public debt and possible repricing in private credit markets threaten outlook
Nandalal Weerasinghe on Sri Lanka’s IMF programme, central bank reforms and road to recovery
The Central Bank of Sri Lanka governor speaks about his return from retirement to aid Sri Lanka’s structural reforms and recapitalisation, reinforce central bank independence and develop financial resilience
Banknotes: October to December 2024
A round-up of news and salient issues that have affected central bankers in the past three months
Bank of Lithuania steps up AML/CFT measures for crypto
Bank to co-operate with financial crime investigators to oversee ballooning digital assets sector
Banxico ops chief confident on swaps reference rate transition
Major exchanges to introduce TIIE de fondeo on November 22, with derivatives liquidity expected to grow