July 2022: The macroprudential challenge of climate change

By the ECB/ESRB Project Team on climate risk monitoring As work on laying the analytical foundations for measuring climate-related financial risk matures, there is a need to better gauge its implications for systemic risk, and associated scope for a macroprudential policy response. Previous assessments of climate-related risks to financial stability for the European Union have[…]

July 2022: BIS Working Papers – Cross-border financial centres

By Pamela Pogliani and Philip Wooldridge Financial centres that cater predominantly to non-residents – which we refer to as cross-border financial centres (XFCs) –are important intermediaries of cross-border financial flows. For analysing capital flows and international interconnectedness, it can be useful to distinguish countries that are home to XFCs from other countries. We improve on previous methodologies for identifying[…]

CEPR Discussion Paper – Uncertainty Shocks, Capital Flows, and International Risk Spillovers

Author(s): Ozge Akinci, Sebnem Kalemli-Özcan, Albert Queralto Date: July 2022 Abstract: Foreign investors’ changing appetite for risk-taking have been shown to be a key determinant of the global financial cycle. Such fluctuations in risk sentiment also correlate with the dynamics of UIP premia, capital flows, and exchange rates. To understand how these risk sentiment changes transmit[…]

July 2022: ESRB NBFI Monitor – EU Non-bank Financial Intermediation Risk Monitor 2022

By the European Systemic Risk Board (ESRB) The NBFI Monitor 2022 discusses the main developments related to investment funds and so-called other financial institutions (OFIs) in 2021 and provides an initial overview of the developments triggered by the war in Ukraine. Total assets of EU investment funds and OFIs grew by approximately 9% in 2021.[…]