Credit conditions
IMF paper tests conventional wisdom on economic and financial cycles
World cycles have not become stronger during globalisation period, researchers find
Māori business principles support stability, says RBNZ’s Orr
Collectively-owned businesses are more stable, but many struggle to access capital, governor says
BIS authors detail new data on non-bank exposures
Banks have highly concentrated exposures to non-financial counterparties, researchers say
Turkish central bank steps up efforts to increase bank lending
CBRT makes second move to use reserve levels to sharply increase credit growth
Banks shy away from ECB’s first TLTRO III
Demand was “shockingly weak” says analyst, but firms are expected to increase their uptake in December
‘Non-salient fees’ matter for mortgage pricing – BoE paper
Many borrowers appear to be less sensitive to fees than to interest rates, and firms exploit this
RBI weighs plan to boost securitisation market
Government-sponsored intermediary could be formed to act as market maker and standard setter
China lowers reserve requirements after premier’s intervention
PBoC cuts reserve requirement by 50bp to boost lending, its third move this year
Fears about eurozone countries weigh on credit creation – research
Perceptions of weakness at individual banks are less important – Bank of Portugal paper
China changes mortgage rates anchor to curb housing risks
Home loan rates may be set higher to avoid real estate bubbles as central bank seeks lower rates for rest of the economy
Interbank rate uncertainty raises cost of credit – ECB paper
“Novel measure” helps authors judge effect of disruptions to interbank markets
Estonian paper looks at Eastern European credit
Lack of competition in banking sectors is fueling pro-cyclical credit creation, researchers find
AI can help predict consumer defaults – NBER paper
Researchers say “deep learning” could be useful in designing macro-prudential policies
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…
Bank of Finland paper studies impact of China’s credit channel
Monetary policy’s effects on credit have significant impacts on economic activity, researchers say
Central banks should use direct lending in shocks – BIS paper
Lending to firms directly could reduce welfare loss during financial shocks, researchers say
Non-banks attracting more global liquidity than banks for first time
In Q1, more liquidity flowed to non-banks than banks for the first time in 40 years of BIS data
UAE central bank hails new financial stability remit
Financial stability report notes NPL levels have risen, but banks are also making larger provisions
Chinese domestic interest rates falling – PBoC official
Key money market rates falling, says PBoC official, and bank will try to boost credit for SMEs
Bank of Tanzania removes CEO of state-owned TIB Bank
The IMF has flagged the high levels of non-performing loans in the banking sector
‘Fintech shadow banks’ shaping global credit – Amit Seru
Regulators need to pay more attention to shadow banks, Stanford professor says
Higher US capital buffers leave firms’ debt unchanged – Fed paper
Individual banks cut lending due to higher capital buffers but firms find other lenders, researchers say
BoE’s Cunliffe says housing tools have worked
More evidence has emerged on “borrower-based” tools since they were first tested, deputy says
Russian central bank tries to cut consumer lending
Bank of Russia puts limits on “payday loans” and expresses concern over growth in unsecured loans