Macro-prudential policy
Risky markets had a ‘spectacular’ 2019, IMF officials warn
Largest combined number of rate cuts since 2008 drove financial vulnerabilities, senior officials say
Kuwait’s central bank should relax rate caps – IMF
New legislation will encourage nationwide credit rating system, fund staff 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
Bank of Spain unveils first strategic plan
Hernández de Cos’s priorities include better macro-prudential policies and increased trust
People: Modi’s government appoints new RBI deputy governor
Michael Patra takes position left by Viral Acharya in June 2019; EBA names new executive director; UK Payment Systems Regulator appoints a new head of policy
ECB largely welcomes move to expand German macro-pru powers
ECB says measures giving BaFin greater powers are “appropriate”, but need better data
Central Bank of Iceland completes merger with regulator
Governor Ásgeir Jónsson to retain overall responsibility; two new deputy positions created
Tighter regulation may be working – MIT economist
Kristin Forbes says banks may be more resilient but warns risk could be shifting to shadow sector
New Zealand launches next phase of RBNZ governance overhaul
RBNZ gains new governance board and formal financial stability remit
De Guindos: Boost eurozone banks’ countercyclical capital buffers
Increases in counter-cyclical buffers should accompany decreases in other capital ratios, says ECB vice-president
Basel Committee proposes illustrative prudential framework for crypto assets
Holdings of crypto assets would be split between banking book and trading book depending on exposure risks
Effects of Irish and Dutch macro-pru differ strongly – DNB paper
Researchers look at interaction of monetary and macro-prudential policy in two eurozone economies
BIS paper examines economic impact of macro-pru
Shocks are similar to monetary policy but transmission differs, researchers say
BoE climate stress tests results to be shared with NGFS
Carney says tests will highlight firms that are not implementing appropriate policies
Book notes: The Japanese central banking system compared with its European and American counterparts, by Yoshiharu Oritani
The book has “no equal” in reviewing new microeconomic theory for central banking
Swedish MPs propose dual mandate for Riksbank
Proposals aim to redefine institution’s role in monetary policy, financial stability and payments, while enhancing independence
China should bolster macro-pru framework – IMF paper
Lack of accurate credit information weakens macro-prudential measures, researchers say
Climate prudential policies could ‘backfire’, IMF economists warn
Lack of international standards could result in ‘greenwashing’ and increased financial stability risks, economists warn
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
Riksbank warns of rising financial stability risks in Sweden
Global economic slowdown and continued low rates may encourage greater risk-taking
RBNZ may raise insurance firms’ solvency levels
Governor expects review of insurers will lead to “series of thresholds”
Belgian and Slovene central banks tighten macro-prudential regimes
NBB warns of Belgian mortgage risks and Slovene central bank cautions over consumer loans
IMF boosts financial surveillance funding
IMF seeks to improve hiring and training of economists after Independent Evaluation Office report
Stronger micro-prudential oversight needed on climate change – Mexican deputy
Financial firms should incorporate environmental scenario analysis into their decision-making process