Banks
Non-banks continue rise as banks lose market share
Non-bank financial firms hit a record high, at nearly half of global financial assets, FSB finds; leveraged lending increasingly an area of focus
Capital requirements impact collateral demands – BoE paper
Higher capital requirements can make banks demand more collateral, authors find
IMF endorses Hong Kong’s tight macro-prudential measures
But risks to the outlook appear to be building, the fund says
European Commission accuses eight banks of bond market collusion
EC can fine banks 10% of their turnover if it finds “sufficient evidence” of market rigging
Bank of Ghana slashes further 100bp from policy rate
Action follows similar move in 2018, as inflation declines into the target range
Bangladesh Bank eyes national savings imbalances
Growth is high and inflation “contained”, but high-yield products are draining deposits from banks
Spanish governor demands BBVA conduct thorough probe of spy allegations
The bank allegedly hired an ex-police chief in 2004 to spy on government officials and businessmen
Risk manager: Saudi Arabian Monetary Authority
A multi-year overhaul of the Saudi central bank’s risk architecture has come to fruition, resulting in radical changes in behaviour
RBNZ suggests eliminating minimum Tier 2 holding
New Zealand’s central bank proposes dramatically increasing Tier 1 to reduce resolution risk
Payments and market infrastructure development: Reserve Bank of Australia
The RBA has spearheaded the development of an upgraded retail payment system that includes real-time settlement
Currency services: De La Rue
2018 was a busy year for the UK-based banknote provider as it secured new clients and transformed its focus towards technology
Riksbank’s negative rates successfully passed through to economy – research
Findings contrast with recent work by Larry Summers and co-authors
RBI governor: India must ‘brace’ for global turbulence
Shaktikanta Das stresses need to stay firm on banks’ asset quality, despite earlier leniency
Innovation prompts firms to hold more cash – IMF paper
Firms must hold enough liquidity to insure against risky research and development
Central Banking Awards 2019: first winners announced
Reserve manager, initiative, asset manager, innovation in reserve management, global markets, custody and specialised lending awards unveiled
Innovation in reserve management: BNP Paribas Asset Management
The asset manager developed new fixed income investment strategies in 2018 that have delivered strong returns and diversification for clients, while also offering practical training support
Brexit might allow simpler regulation for small UK firms – PRA chief
Sam Woods says “simpler, not weaker” regulation might boost both competition and safety
Summers and co-authors find negative rates can be contractionary
Policy rate cuts below zero can lead to higher lending rates by commercial banks, authors find
Growth keeping global debt-to-GDP just below all-time high – IIF
Latest monitoring report puts debt at three times global GDP, with some countries especially vulnerable
Moldovan central bank suspends rights of lenders’ shareholders
Move is latest effort to enforce law in notoriously difficult banking sector
Supervisory lessons: resolution is a ‘dirty business’
Former Bank of Spain head of supervision Aristóbulo de Juan reveals his principles for resolving problem banks in the final article of a four-part series
Individual bank diversification can increase systemic risk, researchers find
Banks that are not systemically important can be ‘systemic as a herd’, authors say
Islamic finance is for everyone, Malaysia’s Zahid says
Bank Negara Malaysia assistant governor stresses inclusiveness of Islamic finance but says SMEs are still not taking advantage
BIS’s Borio calls on economists to take money more seriously
Money is too often explored in isolation, or ignored completely, the BIS economist says