By Claudio Borio, Stijn Claessens and Nikola Tarashev We propose a framework for classifying regulatory measures with a financial stability objective as activity-based (AB) or entity-based (EB). AB measures constrain an activity on a standalone basis, whereas EB measures constrain a combination of activities at the level of entities. Since such combinations underpin much of financial[…]

Key takeaways Banks’ cross-border claims rose by $1.4 trillion over the first quarter of 2022, the third largest quarterly expansion on record. Even on a seasonally adjusted basis, the expansion was unusual (+$700 billion), booked mostly vis-à-vis advanced economies (AEs). Banks’ cross-border claims on EMDEs changed little overall over Q1 2022, as a drop in claims on China offset an[…]