Risk
Regional Fed presidents warn asset purchases are creating risks
Robert Kaplan expresses concern over Fed’s response to market funding pressures
Bank Negara Malaysia seeks feedback on new climate taxonomy
Central bank proposes classifying activities based on how much they harm the environment and how willing businesses are to improve
Crises are non-linear, beware high debt levels – research
IMF paper warns against complacency on high debt levels
Risk weight tweak could fix IFRS 9 capital clash – research
Practitioner suggests way to cancel out double-counting of Basel credit loss provisions
Machine learning can produce better credit scores – BIS paper
Fintech firms may be better at predicting default rates, researchers find
Yngve Slyngstad: contrarian person, brilliant investor
Knut Kjær reflects on the character of the man that has led Norway’s $1.1 trillion sovereign wealth fund and contemplates the complex governance challenges ahead
Tighter regulation may be working – MIT economist
Kristin Forbes says banks may be more resilient but warns risk could be shifting to shadow sector
BoE to test banks on climate risks over 30-year horizon
Unusual stress-test design reflects long horizon and interlinked risks posed by climate change
Leveraged lending creates challenges in UK stress tests
On some assumptions, banks would fail the tests; BoE to alter capital framework
CBDC has been “over-hyped” – former RBI deputy
Focus on retail CBDCs is a potential distraction from core central banking functions, says Sinha
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
UK regulators weigh rules for ‘operational resilience’
Under proposals, firms will be expected to demonstrate their preparedness for operational issues
NY Fed’s Stiroh: ‘More work to be done’ on bank culture
Kevin Stiroh discusses progress in reforming banking culture and how technology is changing the risk management equation for both firms and supervisors
New Zealand’s life insurers failing to improve conduct risk management – Orr
RBNZ “underwhelmed” by response from life insurers to conduct recommendations
Carney named UN special envoy on climate risk
Governor will join the UN’s staff on his departure from the Bank of England
Banks could be stuck with riskiest corporate loans during downturn – Fed paper
Researchers say loan syndication may leave banks unable to offload leveraged debt in downturn
Kansas Fed paper looks at weak US fraud controls
US has much higher ‘in-person fraud’ rates than three other developed economies, researcher says
‘More effort’ needed to protect financial stability – RBNZ’s Orr
Central bank determined to raise capital requirements and improve behaviour in finance
Will the Fed pass its year-end funding test?
An unprecedented rate spike in September prompted the Fed to inject billions into funding markets. But will its efforts be enough to foil year-end pressures? Could opening the standing repo facility to foreign central banks help?
Cœuré flags risks to ‘autonomy and resilience’ of European payments
Central banks need to resist payment market fragmentation, says ECB official; Banque de France’s Beau calls for experimentation with wholesale CBDC
Canada’s Poloz on monetary policy limits, transparency and cyber recovery
Bank of Canada governor Stephen Poloz speaks about stagflation risks from trade wars, the importance of market signals, Canada’s CBDC plans and why he is not a fan of minutes
Climate risks may be uninsurable – DNB’s Elderson
NGFS chairman calls on the implementation of a carbon tax to help mitigate these risks
RBNZ sanctions bank over capital calculation errors
Bank of New Zealand appears to have misreported risk weights for several years
US market liquidity deteriorated in 2019, Fed warns
Frequency of equity market flash events has increased significantly since 2018