Risk
Norway to ditch oil stocks from Norges Bank fund
Government says move will reduce the economy’s vulnerability to oil price shocks
Markets still in thrall to central banks – BIS
But some apparent anomalies may be signs of healthier market function, says Claudio Borio
IMF board says Malta must tighten AML-CFT regime
Maltese Financial Services Authority needs better funding and more independence – IMF board
Foreign banks expect Fed proposal imminently
New framework for tiering foreign bank requirements could come as early as this week
NY Fed paper scrutinises post-crisis CDS market
Little research has been done on the market at a “granular level”, authors say
FOMC members want plan to end balance sheet reduction, minutes show
Some FOMC members say further rate rises may be necessary in 2019
Former Fed chairs join over 3,000 economists in call for carbon tax
Economists including central bankers and Nobel laureates demand action on climate change
The role of e-cash in China
The use of e-cash stored on integrated circuit cards notably reduces cash handling fees and increases security. It also offers greater convenience notwithstanding the rise of mobile payments
Flattening yield curve increased retail banks’ profits – Chicago Fed
The results reflect a change in banks’ business models after the financial crisis, researchers say
Volcker rule helped curb equity market risk – researchers
Banks had large trading exposures to equity market risk before the rule was introduced, they find
Lifetime achievement: Zhou Xiaochuan
The former People’s Bank of China governor stands out for his high levels of integrity, intellectual rigour and bold reforms that have served the public interest in China and elsewhere
Quarles says FSB ‘must evolve’
New chair calls for changes in the way the organisation assesses financial sector threats
Latest restructuring boosts the PBoC’s regulatory clout
Hui Feng says the restructuring of the PBoC carries “profound implications” for the central bank’s role in policy-making
Kristin Forbes urges academics to focus on macro-prudential policy
Our understanding of the tools and ability to spot new risks remain limited, professor says
Capital requirements impact collateral demands – BoE paper
Higher capital requirements can make banks demand more collateral, authors find
IMF endorses Hong Kong’s tight macro-prudential measures
But risks to the outlook appear to be building, the fund says
BIS study asks whether central bank crisis actions de-risk the balance sheet
Authors study whether a central bank can influence its own risk, or if this is “wishful thinking”
PBoC denies that new liquidity tool is a ‘form of QE’
Central bank bills swap is essentially quantitative easing, says one analyst
Risk manager: Saudi Arabian Monetary Authority
A multi-year overhaul of the Saudi central bank’s risk architecture has come to fruition, resulting in radical changes in behaviour
‘Unsustainable’ debt needs more thought – BoE’s Broadbent
Sustainable debt levels can differ between economies, and may not be observable – deputy governor
Debt growth a better warning signal than levels – BoE’s Broadbent
Deputy governor says countries with high debt levels did not necessarily suffer more during the 2008 crisis
Bahamian financial sector shrinks by more than a third in six years
De-risking in international finance has disproportionately hit Caribbean banks, Rolle says; Bahamian banking reforms heighten concerns
BoE paper studies CoCo effects in ‘one-shot game’
Game theoretic approach suggests CoCos cut risk-taking in certain circumstances
IMF expects global growth to slow further in 2019
“Significantly higher” and “increasingly intertwined” risks weigh on global growth, Lagarde says