Risk
The Covid crisis, central banks and the future
Crisis responses have had positive initial outcomes, but also exacerbated significant underlying challenges that raise concerns related to exit strategies and the future for central banks
Measuring the exceptional speed and scope of Covid-19 monetary policy
Policy actions during the first wave of the pandemic were extraordinary for their intensity, scope and speed. Other patterns also emerge on closer inspection
Bailey hits back at critics in new hearing on LCF scandal
“I am quite angry”, says BoE governor, as he denies accusation of cover-up
Only climate policy risk priced in US equity markets – research
US political debate is only “wake-up call” for investors, who seem to disregard physical risks
Eurosystem adopts common sustainable investment principles
Eurozone central banks aim for climate disclosures on non-monetary policy portfolios in two years
IMF to update debt sustainability framework
Reforms aim to improve framework’s predictive capacity and transparency, IMF says
Final NSFR rule unlocks subsidiary funding for US banks
Technical clarification allows subsidiary capital to be assigned as funding for consolidated group
Monetary unions might benefit from taxing external debt – DNB paper
Policy would reduce adverse effects of shocks to risk premia on sovereign debt, researchers find
Ulrich Bindseil on the launch of the digital euro
The ECB’s director-general for market infrastructure and payments speaks about the functionality, tiering approaches, privacy policies, ledger technology and ecosystem impact of the eurozone's planned CBDC
Eurozone banks must not delay action on credit risk – Enria
Supervisor calls on banks to use capital buffers in order to maintain adequate credit levels
IMF warns of possible market correction
Withdrawal of central bank support might trigger shock, say Tobias Adrian and Fabio Natalucci
ECB grants post-Brexit reprieve on large exposures limit
Exemption for intra-group exposures to UK will be preserved pending a decision on equivalence
ECB steps up work on climate change
Central bank launches climate change centre and invests in new BIS green bond fund
MAS enhances cyber risk guidelines as risks grow
Authority warns “spate” of cyber attacks have targeted suppliers of IT services
BoE reassures foreign banks on post-Brexit booking models
EU banks that lost passporting rights after Brexit are unlikely to have to establish UK subsidiaries
Bank of Italy paper looks at economic impact of disasters
More frequent disasters make economic effects larger and non-linear, researcher finds
Riksbank to increase risk buffer
Swedish central bank concerned about future effects of asset purchases on balance sheet
RBNZ suffers data breach in third-party system
Governor says breach is “contained” and investigations are ongoing
MAS completes first phase of AI ethics initiative
‘Veritas’ aims to tackle bias in AI-driven financial services
ECB outlines changes to forecasting during Covid
High-frequency data, GDP-at-risk, changes to use of PMI and stringency index all useful, authors say
Hernández de Cos on ECB policy, crises responses and Basel reform
Spanish governor and Basel Committee chair Pablo Hernández de Cos favours a form of average inflation targeting, says ECB is willing to boost stimulus and Basel reforms not diminished by Covid-19 exceptions; stresses the need for structural reform and…
2020: The year in review
The past 12 months have been marked by crisis-fighting and losses, but also innovation
Rebuilding policy buffers is key challenge of coming decade – Borio
BIS economist says central banks are not out of options but the trade-offs are increasingly difficult
Is the integrity of Afghanistan’s central bank under threat?
Acting governor fires key staff and is accused of undoing reforms, while World Bank appears ready to suspend funds; administration and other donors show few signs of learning from Kabul Bank scandal