Shadow banking
China picks Yi Gang to lead PBoC
US-trained Yi is viewed as a pro-market reformist, who has worked under his mentor Zhou Xiaochuan for two decades
China to merge regulators and expand central bank’s role
The PBoC will gain key powers from the regulatory commissions and report to the key committee
PBoC set for new governor
President Xi Jinping’s adviser Liu He widely expected to be named next PBoC governor
Global shadow banking assets hit highest level since 2002 – FSB
FSB report uses data on Luxembourg for first time and examines Chinese shadow banking risks
China feels tighter financial conditions ahead of new year
Record-breaking bank loans contrast with slower broad credit growth, amid shift away from shadow banking
China’s shadow banking market dominated by banks
BIS researchers map the Chinese shadow banking system and its evolution over time, finding it contrasts with the market-based shadow banking of the US
Carstens: regulators should not forget the non-banks
Banking standards may be largely complete but there is still work to do on non-banks and fintech, the new BIS chief says
Risks to China’s financial sector are growing, ECB paper says
Banks are exposed to rapidly growing shadow banking sector, researchers say
Fed could use rates to counter instability – Mester
2015 exercise showed major problems in use of macro-prudential tools, says Cleveland Fed chief
FSB praises ‘good progress’ on S Korean resolution framework
Peer review finds additional work to be done on filling gaps and strengthening supervision
ECB article warns of possible effects of a Chinese slowdown
Looser Chinese monetary policy in response to problems could have significant effect
PBoC’s Zhou warns of ‘sudden’ contagion risks
Governor continues with tough line on financial imbalances as he prepares to hand the reins to an as-yet-unnamed successor
‘Black box’ AI could pose macro risks – FSB
Rise of artificial intelligence in finance may promote efficiency, but it can be hard to tell where the dangers lie, report finds
Non-bank stress tests must be improved – Constâncio
ECB vice-president says stress tests for non-banks are still in a “fledgling state”
Tougher action needed on China debts – research body
Asean research office says corporate debt needs close monitoring, even if immediate crisis is unlikely
Shadow banks ‘interfere’ with macro-pru – paper
Institutional function should determine whether institutions are regulated, say researchers
Non-banks drive rebound in cross-border banking – BIS
First-quarter statistics show non-banks helped drive a turnaround of cross-border banking flows, which had been in retreat
China's president hands PBoC stronger role in tackling financial risks
China will set up a financial stability and development committee to co-ordinate financial supervision, and the central bank will play a stronger role in financial regulation, Xi Jinping said at a national financial work conference.
BoE leads foray into non-bank stress simulations
Paper sets out agent-based approach to modelling feedback loop that could create sharp price moves, even where funds and dealers are individually safe
FSB turns to video in effort to widen comms reach
“Safer, simpler, fairer” video seeks to broaden communications effort to a less specialised audience
Fischer cautions against complacency
Fed vice-chairman says it would be “foolish” for policymakers to think they have eliminated all risk; there are still areas where supervisors have “limited insight”, says Fischer
Uncertainty over size of European ‘shadow banks’ – ESRB
Central banks are improving data collection, but many details remain unclear, report says
Growth of shadow banks led by risky investment vehicles – FSB
Shadow banks continue to gain ground, with those offering liquidity and maturity transformation showing some of the fastest growth
Croatian governor warns of further financial crises
It is probably time for central banks to “get out” of expanded balance sheets, Boris Vujčić says