Staff Working Paper – Negative rates, monetary policy transmission and cross-border lending via international financial centres

Author(s):Desislava Andreeva, Andra Coman, Mary Everett, Maren Froemel, Kelvin Ho, Simon Lloyd, Baptiste Meunier, Justine Pedrono, Dennis Reinhardt, Andrew Wong, Eric Wong, and Dawid Żochowski Date:January 2023 Abstract: We study the effects of negative interest rate policies (NIRP) on the transmission of monetary policy through cross-border lending. Using bank-level data from international financial centres (IFCs)[…]

Foreign Banking Organizations in the United States and the Price of Dollar Liquidity

By Wenxin Du Foreign banking organizations (FBOs) in the United States play an important role in setting the price of short-term dollar liquidity. In this post, based on remarks given at the 2022 Jackson Hole Economic Policy Symposium, we highlight FBOs’ activities in money markets and discuss how the availability of reserve balances affects these[…]

5th BIS workshop on Research on global financial stability: the use of BIS international banking and financial statistics

CfP Deadline Date:July 31, 2023 Conference Event:December 15, 2023 Event Location:Basel, Switzerland Organizer(s):Bank for International Settlements (BIS) The Bank for International Settlements (BIS) will host the fifth workshop on the use of BISinternational banking and financial statistics. 1 The workshop will be held in-person at the BISheadquarters in Basel. The workshop will bring together central[…]

February 2023: EBA asks authorities to increase transparency on their approach to bail-in in case of banking failure

By European Banking Authority The European Banking Authority (EBA) published today its final Guidelines addressed to resolution authorities for the publication of their approach to the bail-in tool implementation. Transparency and predictability are key both to the credibility of the resolution framework and to the safeguard of investors’ protection. These Guidelines aim at ensuring that[…]

BIS Working Paper – Constrained liquidity provision in currency markets

Author(s):Wenqian Huang, Angelo Ranaldo, Andreas Schrimpf, and Fabricius Somogyi Date:February 2023 Abstract: We study dealers’ liquidity provision in the currency market. We show that at times when dealers’ intermediation capacity is constrained their cost of liquidity provision increases disproportionately relative to dealer-provided volume. As a result, the elasticity of dealers’ liquidity provision drops by at[…]

January 2023: Monetary policy, inflation, and crises: New evidence from history and administrative data

By Gabriel Jiménez, Dmitry Kuvshinov, José-Luis Peydró, and Björn Richter Central banks have been raising interest rates to fight inflation, after a period when rates were first cut and then kept low. This column uses data for 17 developed countries over 150 years to show that policy rate hikes substantially increase crisis risk, if rates[…]