Counter-cyclical
Risky markets had a ‘spectacular’ 2019, IMF officials warn
Largest combined number of rate cuts since 2008 drove financial vulnerabilities, senior officials say
Brookings paper examines impact of governance structures on use of CCyBs
Countries with strong governance mechanisms are more likely to use the macro-prudential tool, researchers find
De Guindos: Boost eurozone banks’ countercyclical capital buffers
Increases in counter-cyclical buffers should accompany decreases in other capital ratios, says ECB vice-president
‘Sectoral’ counter-cyclical buffer could boost resilience, says Basel Committee
Targeted tool would have a narrower impact on segments of the market
Eurozone should look at raising capital buffers – ECB paper
Impact on growth of 50-basis point rise in counter-cyclical buffers would be limited, researchers say
Policy-makers must re-examine financial stability tools – Fed official
Capital regulations may not reflect increased risks from low-rate environment, Rosengren says
Corporate debt levels would amplify downturn, Brainard warns
CCyB should be used when stability risks are inconsistent with dual mandate, governor says
Law could help central banks fight the next recession
Brookings panel discusses using countercyclical regulations to boost spending at the ZLB
Macro-prudential policy needs range of tools – Bundesbank paper
Model assesses effectiveness of capital buffers, LTV ratios and sectoral risk-weighting
Mark Carney on joined-up policy-making, forward guidance and Brexit
BoE governor rules out negative rates and change to inflation targets, offers update on too-big-to-fail and use of CCyBs, highlights challenges of an asymmetric monetary system, hits out at cumbersome payments and warns Facebook’s libra cannot ‘learn as…
Raising CCyBs could have ‘greatly mitigated’ 2008 crisis – St Louis Fed paper
Policy-makers could have avoided a fall in aggregate consumption of 21%, researcher finds
Senior Fed officials diverge on future rate policy
Richmond Fed president Tom Barkin not convinced inflation concerns warrant a cut
CNB raises countercyclical buffers as risks build
The central bank stress-tests not only the financial sector but also households and the government
Quarles defends decision to set countercyclical buffer at zero
But there may still be disagreement within the Fed’s ranks
Regulators must not be too strict in a crisis – BIS paper
Cyclical capital requirements should account for downturns as well, author argues
The Brexit conundrum
The Bank of England has only limited room to respond to a hard Brexit
Fed’s Quarles outlines ‘building block approach’ to insurance regulation
Regulator chose not to copy and paste banking sector regulations onto insurers, says vice-chair
French government raises counter-cyclical buffers for first time
“Economic and political uncertainty” call for hike to “moderate level” of 0.25%, council says
BIS report urges tighter global macro-pru co-ordination
Deputy general manager says global institutions could do more to promote co-ordination between advanced economies and “systemic middle-income countries”
Norway maintains countercyclical capital buffer at 2%
Norges Bank advises the government not to reduce the buffer because of high household debt
Interest rate risk could be seed of next crisis – economists
Financial markets may have underestimated the persistence of low rates, and regulations have amplified the threat, say Srichander Ramaswamy and Philip Turner
Lower growth follows credit booms with high-yield lending – paper
Lending standards in bond markets track banks’ credit standards
PBoC tightens bond trading rules, relaxes renminbi controls
China’s financial regulators continue their efforts to deleverage the economy and promote renminbi internationalisation
‘Decisive’ action needed to deflate China’s credit boom – IMF paper
Lack of reliance on foreign financing, low government debt, and state control help to mitigate effects of credit boom, but buffers should not be relied upon in the long run