Shadow banking
Growth keeping global debt-to-GDP just below all-time high – IIF
Latest monitoring report puts debt at three times global GDP, with some countries especially vulnerable
China remains “committed” to globalisation, says Zhou Xiaochuan
Debt sustainability to be discussed at second Belt and Road Initiative summit next year; WTO deal still needed
ECB has made ‘little use of macro-pru powers’, senior official says
Eurozone authorities lack powers to deal with diffuse sovereign risk or shadow banks – ECB official
Indian economy still strong despite financial troubles – RBI
Rapid credit growth continues despite need for ongoing liquidity support for non-banks
Fintech poses “serious” challenge to governance, says former PBoC deputy
Li Dongrong warns of fintech spillover risks, regulatory arbitrage and digital divide; dismisses PBoC use of ‘untested’ blockchain
Podcast: The global regulatory landscape
Capital rules have made the core banking system safer, but other parts of the system may still be at risk, says Andrew Metrick
Podcast: Post-crisis monetary policy
Many things behave like money in the modern economy and central banks have not yet figured out how to control them all, says Andrew Metrick
Quarles and Knot confirmed for top FSB roles
DNB president set to take full chairmanship after three years
Draghi calls for new macro-prudential tools
Policy-makers do not fully understand “shadow banking” sector, Draghi tells ESRB
RBI prepared to step in as non-banks suffer liquidity shortage
Government and regulators stress readiness to act amid non-bank liquidity pressures
Risks posed by some ‘shadow banking’ firms not fully known, ESRB says
“Significant data gaps” prevent full assessment of “other financial institutions”, report says
ECB calls for changes to draft investment firm regulations
EU proposals omit macro-prudential measures and could cause statistical problems, ECB says
Next financial crisis “will be brewing” in shadow banking – Bullard
Silicon Valley disruption represents threat to financial stability; Fed has limited powers to counter it despite FSOC and tough new bank rules, says Eighth District president
A real-time payments revolution in Asia
Asian central banks have encouraged the development of instant payment systems to defend monetary policy transmission and counter cryptocurrency usage
Book notes: Unfinished business, by Tamim Bayoumi
Anand Sinha praises Bayoumi’s analysis of how the euro crisis and US housing crash were, in fact, intertwined
Book notes: China’s Great Wall of Debt, by Dinny McMahon
McMahon is too pessimistic about the chances of China managing to get its great wall of debt under control, writes Michael Taylor, but he is undoubtedly right about the scale of the challenge
PBoC cuts RRR amid growing instability
The move will release $108 billion amid concerns on the slowing economy and trade disputes
Lowe says RBA is closely monitoring China’s shadow banks
Interconnections mean trouble in Chinese markets would likely spill into Australia, governor says
The toxicology of post-crisis shadow banking
Mark Carney tempted fate in 2017 when he declared the most toxic forms of shadow banking “no longer represent a global stability risk”. Did he speak too soon?
Philip Lane on systemic risk, transparency and Brexit
The Central Bank of Ireland governor speaks with Dan Hardie and Chris Jeffery about transparency, shadow banking, ECB succession and tackling systemic banking risk in the eurozone
De Galhau: EU needs to stress test non-bank liquidity
Banque de France will examine risk of pension schemes redeeming fund assets, says governor
BIS report urges tighter global macro-pru co-ordination
Deputy general manager says global institutions could do more to promote co-ordination between advanced economies and “systemic middle-income countries”
Who is Yi Gang?
Hui Feng says Beijing’s choice for PBoC chief fits into a wider liberal cadre across senior financial positions – but Yi faces plenty of challenges in delivering reform
Global leverage may be higher than supervisors realise – IMF paper
Standard measures of leverage are too focused on balance sheets, researchers say