March 2020: New VoxEU Column – Coping with disasters: Lessons from two centuries of international response

The world is coping with a global disaster, as the new Coronavirus takes a toll on many lost lives and a severe impact on economic activity. To provide a long-run perspective, this column documents the international response to a variety of disasters since 1790. Based on a new comprehensive database on loans extended by governments[…]

March 2020: New VoxEU Column – Coronavirus and financial stability 2.0: Act jointly now, but also think about tomorrow

The COVID-19 pandemic has massive detrimental economic effects and demands immediate policy actions to prevent a financial or debt crisis. This column argues that while the fiscal policy responses in Europe have some merit in the short term, they put financial stability in the longer run at risk. It calls for a coordinated long-term fiscal[…]

March 2020: ECB Press Release – ECB Banking Supervision provides further flexibility to banks in reaction to coronavirus

ECB gives banks further flexibility in prudential treatment of loans backed by public support measures ECB encourages banks to avoid excessive procyclical effects when applying the IFRS 9 international accounting standard ECB activates capital and operational relief measures announced on March 12, 2020 Capital relief amounts to €120 billion and could be used to absorb[…]

March 2020: SRB Press Release – SRB decides no compensation due to Banco Popular shareholders and creditors, finding that insolvency would have been more costly

The Single Resolution Board (SRB) has decided that no compensation is due to shareholders and creditors affected by the resolution of Banco Popular Español, S.A. (BPE). It concluded that they would not have been better off under normal insolvency proceedings. The decision is based on the post-resolution valuation by an independent valuer, as well as[…]

March 2020: FSB Press Release – FSB coordinates financial sector work to buttress the economy in response to COVID-19

The FSB, representing a broad and diverse membership of national authorities, international standard setters and international bodies, is actively cooperating to maintain financial stability during market stress related to COVID-19. The global financial system today is in a better position to withstand shocks, maintain market functioning and sustain the supply of financing to support the[…]

March 2020: BCF Seminar – Torsten Slok on COVID-19 and global financial markets

Faced with growing uncertainty around the COVID-19 pandemic, countries around the world are taking extreme measures to lessen the already severe impact on their citizens’ health, well-being, and economic circumstances. What are the implications of the pandemic for the global economy? How has it affected global financial markets—and what might we expect moving forward? On[…]