Regulation
Central banks’ profit distribution widely agreed with governments
Few institutions have arrangements with other parties or private shareholders
Two-thirds of central banks report profit in last fiscal year
Few institutions seek recapitalisation and technological advancement for operational goals
Board non-execs more likely to be appointed by governments
Middle income central banks tend to have more government officials on board
Central bank independence usually safeguarded by law
But one in 10 respondents see their autonomy threatened
Most central banks have policy independence
But some respondents provide details of pressure they have faced to change policy
Middle income central banks lag on diversity and green policies
But code of ethics and whistleblower schemes remain common standards
BoE plans upgrades to data collection process
Overhaul includes work on validation, communications with firms and common data standards
Governors’ salaries tend to rise with country income
Low income developing countries less likely to disclose data
‘No frowning’ on banks for discount window borrowing – Fed official
More banks have completed paperwork to access Fed lending facility than a year ago
African central banks most likely to manage sovereign wealth fund
FX reserve management, currency supply remain leading functions in most jurisdictions
Governors rarely removed by central bank boards
Ultimate responsibility broadly vested in heads of state, other government entities
Governors’ terms average just over five years
Central bank chiefs are typically allowed two consecutive terms in office
Around half of governments consult central banks on mandate reviews
Practice less likely to be found in Asia-Pacific and the Americas
When competitors become partners: paradoxes of ‘open banking’
Manoj Singh says the rise of open banking may sit uneasily with the complexity of platform banking
Thailand forges ahead with virtual banking
BoT to accept applications to open virtual banks from March 20
Fintech Benchmarks 2024 report – the promise and threat of AI
Benchmark data reveals how central banks are developing CBDC, tapping into AI tools and using cloud services to boost their work
NBER paper tracks shift to ‘arms-length’ finance
Authors assess three drivers of move from bank lending to securities-based finance
Standardised FRTB leaves banks befuddled on residual risk
Benchmarking exercises find “weak consensus” among banks over notional values for exotics
Most central banks’ cloud services are software-focused
Operational environment is largely hybrid and public, while access to server is often domestic
IMF economists study emergence of ‘zombie banks’
Country-level factors tend to be more important than bank-level ones, authors find
Fintech employees trained in AI in just over one-third of central banks
Senior management staff are least trained across jurisdictions
AI being adopted in over half of central banks
Supervision, document automation, data analysis and research are primary areas of use
Regtech strategy still lacking in majority of central banks
Stress testing, AML/CFT risk and reporting are top areas of application
Suptech strategy adoption remains below 50%
Resource constraints and data quality issues are still barriers