May 2020: New Seminar Series – MoFIR Virtual Seminars on Banking

Building on the success of the MoFiR Workshop on Banking, we are launching a monthly series of MoFiR virtual seminars on banking and financial intermediation to maintain an active discussion on these important topics. The seminars will be open to all those interested, including faculty, graduate students, and policymakers around the world. Please register to[…]

April 2020: New BIS Bulletin – Dollar funding costs during the Covid-19 crisis through the lens of the FX swap market

Since the start of the Covid-19 pandemic, indicators of dollar funding costs in foreign exchange markets have risen sharply, reflecting both demand and supply factors. The demand for dollar funding has grown in recent years, reflecting the currency hedging needs of corporates and portfolio investors outside the United States. Against this backdrop, the financial turbulence[…]

April 2020: New IMF Blog Article – COVID-19 Crisis Poses Threat to Financial Stability

The COVID-19 pandemic has caused an unprecedented human and health crisis. The measures necessary to contain the virus have triggered an economic downturn. At this point, there is great uncertainty about its severity and length. The latest Global Financial Stability Report shows that the financial system has already felt a dramatic impact, and a further intensification[…]

April 2020: IMF Global Financial Stability Report Chapter 1 – Global Financial Stability Overview: Markets in the Time of COVID-19

The coronavirus (COVID-19) pandemic poses unprecedented health, economic, and financial stability challenges. Following the COVID-19 outbreak, the prices of risk assets collapsed and market volatility spiked, while expectations of widespread defaults led to a surge in borrowing costs. Several factors amplified asset price moves: previously overstretched asset valuations, pressures to unwind leveraged trades, dealers’ balance-sheet[…]

FSC Research Workshop 2020

CfP Deadline Date: June 12, 2020 Conference Event: November 6, 2020 Event Location: Berlin, Germany Organizer(s): Financial Risk and Stability Network The Financial Stability Conference (FSC) will not be hold this year due to the uncertainty with Covid-19 developments and related measures. But we organise the FSC Research Workshop on 6 November and an additional[…]

NBER Working Paper: Optimal Bailouts and the Doom Loop with a Financial Network

Author(s): Agostino Capponi, Felix C. Corell, and Joseph E. Stiglitz Date: May 2020 Abstract: Banks usually hold large amounts of domestic public debt which makes them vulnerable to their own sovereign’s default risk. At the same time, governments often resort to costly public bailouts when their domestic banking sector is in trouble. We investigate how[…]