Stress tests
US banks should prepare for uneven recovery – Patrick Harker
Banks “shouldn’t be issuing large dividends at the moment”, Philadelphia Fed chief says
BoE axes 2020 stress test and gives supervisory guidance
IFRS 9 a challenge for firms given high uncertainty over virus impact
Carney sets out ‘grand unifying theory’ of macro-pru
Loss function for financial stability echoes format of Taylor rule, but requires much more judgement; speech is Carney’s last as BoE governor
Fed unveils new capital regime to criticism from Brainard
Federal Reserve says new rules will maintain capital levels, but senior official calls them “imprudent”
Book notes: After the crash, by Sharyn O’Halloran and Thomas Groll
The book seeks to identify seeds of the next crisis, and the overriding impression is a plea for more regulation
Stability versus solvency
There is still far too much regulatory forbearance on troubled bank debt. More on-site inspections and genuine writedowns are needed to fix the banking system
BoE’s Taylor argues for solution to IFRS 9 ‘headache’
Loss provisioning rules could worsen downturns and present issues for stress-testing, official says
Interview: Luiz Awazu Pereira da Silva
BIS deputy general manager talks about the obstacles central banks face with regard to climate change and why the status quo needs to evolve
Fed could postpone stress buffer beyond CCAR – experts
Delays prompt speculation that the new rules will only be known after the stress-test results in June
Stress test capital buffer ‘on track’ for 2020 testing – Powell
Plans were floated nearly 22 months ago, but Fed yet to offer final rule
Fed to stress-test banks’ leveraged loan exposures
Test features leveraged loan shock; scenario includes biggest-ever rise in unemployment
Fed’s Quarles warns big balance sheet could harm credibility
Fed official proposes tweaks to discount window and G-Sib surcharges to improve monetary framework
IMF seeks to improve ‘climate stress tests’
Effort hampered by lack of good data and failure to develop “green taxonomy” – IMF officials
Stress tests should be ‘two-stage’- Donald Kohn
Results for first test could be used to model second scenario, says senior BoE official
Governor of the year: Mark Carney
Carney has played a vital role in managing Brexit risks while driving efforts towards climate, payments and dollar funding reform
ESRB models long-lasting EU recession for stress tests
Tougher adverse scenario adopted because EU is “at an advanced stage of the financial cycle”
ECB reveals large banks’ individual capital requirements
Enria warns banks to improve profitability, saying “challenging environment” will not change soon
Pension funds suffer in latest round of Eiopa stress-testing
Only 30% of funds have policies in place to mitigate ESG risk; low interest rates continue to pose a problem for funds across Europe
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
BoE climate stress tests results to be shared with NGFS
Carney says tests will highlight firms that are not implementing appropriate policies
Fed’s supervision may have added to repo turmoil, Quarles says
Republican lawmaker concerned for financial stability if “bad regulation” is driving monetary policy
MAS urges vigilance amid rising risks
MAS flags leverage risk in businesses tied to trade and property, as risks to global financial stability rise
IMF chief calls for climate-related stress tests
Fund will work more closely with central banks to tackle climate risks, Kristalina Georgieva says