March 2021: New BIS article – Dollar funding of non-US banks through Covid-19

By Iñaki Aldasoro, Egemen Eren, and Wenqian Huang Non-US banks’ on-balance sheet dollar liabilities rose in 2020 despite the decline in funding from US and offshore money market funds (MMFs). Other non-bank financial institutions were behind this increase, as they drove the strong rise in deposits booked inside and outside the United States. Non-US banks’[…]

March 2021: New VoxEU Column – Unwinding COVID support measures for banks

By Thorsten Beck, Elena Carletti, and Brunella Bruno The combined effect of the measures implemented to maintain banks’ ability to provide funds during the Covid crisis was to create a virtuous circle between corporates, banks, and sovereigns, avoiding a funding crunch for either and keeping risk premiums at deflated levels. However, it also created the[…]

March 2021: New New York Fed Post – Will Capital Flows through Global Banks Support Economic Recovery?

By Claudia M. Buch, Matthieu Bussière, and Linda S. Goldberg While policymakers around the world have aggressively and swiftly reacted to the common negative economic shock from COVID-19, the timing and forms of policy responses in the economic recovery stage may be more geographically differentiated. The range in policy responses, along with variations in the[…]

March 2021: New ECB Blog post – Shining a light on climate risks: the ECB’s economy-wide climate stress test

by Luis de Guindos, Vice-President of the ECB Climate change is one of the greatest challenges facing humankind this century. If left unchecked, it is likely to result in more frequent and more severe climate events, causing widespread devastation and economic disruption. Substantial changes in our production, consumption and living habits are required if the[…]

March 2021: New EGOV Study – Non-performing loans – new risks and policies?

What factors drive the performance of national asset management companies? By Emilios Avguleas, Rym Ayadi, Marco Bodellini, Barbara Casu, Willem Pieter de Groen and Giovanni Ferr In the past decade, asset management companies (AMCs) have been an effective tool for relieving banks of large portfolios of non-performing loans (NPLs). Managed over time, AMCs can reduce[…]