Systemic risk
Market-based systemic risk metrics ‘crucial’ for supervisors
Paper finds measures are effective at predicting crises in the US over a long period
Sustainable development: central banks taking the lead
For those still sceptical about the financial sector’s commitment to progress on sustainable development goals and to taking all possible steps to tackle climate change, 2024 has shown that central banks, financial sector regulators and supervisors are…
How AI is shaping the future of payment system oversight
Biagio Bossone explains that sound AI policies can be a powerful ally supporting financial stability
ECB study highlights firms’ exposure to property downturn
Analysis examines risks to various classes of investor from exposure to commercial real estate
Crashing the nth party: how third-party service provider risks compound
Cross-border collaboration may help deal with risks from multiple layers of outsourcing
SNB researchers develop ‘more precise’ LLM-based risk predictor
New model allows for “more nuanced understanding” of types of uncertainty, researchers say
Lessons learned on macro-pru policies
Macro-prudential tools are proving their worth although use cases vary by country; integration into over-arching policy frameworks remains a challenge
Geopolitics and cyber security remain top systemic risks – BoE
Respondents less worried about UK stability, but international tensions a growing concern
Fed relief plan for G-Sib agency clearing welcomed
Rollback may revive interest in European FCM model, as principal clearing still treated punitively
‘The time to prepare is now’ – G7 probes quantum computing risks
Malicious actors may have quantum computers within a decade, expert group says
Non-banks generally seen as lesser threat than banks
Central banks much more likely to want new tools to tackle risks in the banking sector
Non-banks in RTGSs: greater efficiency or more risk?
Policy-makers and practitioners from central banks in Brazil, Hungary, Israel, Romania, Rwanda and the US share their perspectives
Lessons from the banking turmoil of 2023
Guardrails on capital, liquidity, deposit insurance, resolution, digitalisation and disintermediation need a rethink
Book notes: Fintech: finance, technology and regulation, by Ross Buckley, Douglas Arner and Dirk Zetzsche
An excellent overview of fintech 3.0 and 4.0 that also includes suggestions for smart regulation
Cecilia Skingsley on monetary policy tech and a unified ledger
Head of the BIS Innovation Hub speaks about tokenisation, CBDCs and the ‘black box problem’ in AI
Danish central bank warns over interest-only mortgages
Amortisation requirements for “riskiest loans” may reduce housing volatility, report says
Supervisors grapple with the smaller bank dilemma
How are the guardians of stability moving to address risks linked to smaller banks in the aftermath of SVB’s collapse?
IMF officials warn cyber risks are growing
Systemic and third-party cyber risks pose threats to central banks and firms
Bank of Italy study looks at regulating finance firms’ tech risks
European authorities’ efforts have increased sector’s operational resilience, researchers find
Risk Management Benchmarks 2024 report – tech and turbulence
Data reveals central banks’ risk governance structures and strategies, as well as the top risks in 2024
Interconnectedness of financial system ‘amplifies climate risks’
Bank of Canada research says funds’ responses to climate shocks could exacerbate related losses