Risk
Diego Labat on policy normalisation, capital flows and tech challenges
The Central Bank of Uruguay governor speaks with Christopher Jeffery and Ben Margulies about governance, financialisation, flexible rates versus capital controls, payment upgrades and CBDCs
Machine learning and NLP top regtech tools
Micro-prudential reporting and risk assessment are main regtech applications
Efficient data reporting is main suptech driver
Resource constraints are the biggest challenge in developing a suptech strategy
Change at the Bundesbank: from Weidmann to Nagel?
Joachim Nagel’s appointment highlights the importance of politics at the apex of German central banking. Veteran central bank watcher Klaus C Engelen looks at the media reaction and asks if Buba/ECB discord is set to continue
Payments efficiency is driving force behind many CBDCs
Inclusion, financial stability and monetary policy are also leading factors
European banks face increased leveraged lending risks, says Enria
SSM chair highlights cyber attacks and climate change as emerging risks to financial stability
Fed paper explores stablecoins’ impact on financial system
Researchers say stablecoins could be a ‘digital safe haven’ during volatility, but design choices matter
Picking up the pieces: how to tackle the next phase of the Covid crisis
The global economy is heading into dangerous territory, writes Jagjit Chadha. Central banks must honour their commitments to price stability
Navigating the digital transformation at Deutsche Bundesbank – an update
Joachim Wuermeling explains how the Covid-19 pandemic and other developments have affected the German central bank’s digital transformation during the past two years
The case for trade surveillance in FX and fixed-income markets
This whitepaper explores the essential need for central banks to monitor activity for signs of market abuse, which has a negative impact on the economy and society
Facebook-backed stablecoin project to wind down, report says
Project formerly known as Libra had struggled to gain regulatory approval
ECB launches climate risk stress tests
Exercise will feed into SREP and could indirectly affect lenders’ capital ratios, ECB says
Fed signals time will be right for rate hike ‘soon’
QE set to end in March, with balance sheet to start shrinking after rates rise
Two-thirds of central banks have a centralised risk unit
Central banks with a centralised risk unit tend to use KRIs
Responsibilities and risk management changed at 43% of central banks
Responsibilities modified over last two years required parallel developments in risk management
Banks can exploit imperfectly informed investors – BIS paper
Some banks gain additional funding from investors who underestimate their credit risk, analysts find
Minority of central banks define project risk appetite
Institutional risk and delegated risk appetites defined more often
Bank of Canada pilot explores transitional risks of climate change
Six financial institutions joined the central bank and financial regulator in auditing their assets
Financial risk most staffed function
Risk management team sizes vary considerably between central banks
Experts urge OCC to include climate risk in bank exams
Regulator’s proposed principles are step in the right direction, but still behind Europe
Over half of central banks have a chief risk officer
Most have a risk management committee
Minority of central banks use GRC platforms
RSA Archer and SAP named as providers
ISO 31000, COSO-ERM are influential risk management approaches
IOWRG, Basel and NIST also used by central banks
Over half of central banks modified collateral policies during the pandemic
Most reduced haircuts on banks’ collateral