By International Monetary Fund Financial stability risks have increased rapidly as the resilience of the global financial system has been tested by higher inflation and fragmentation risks. Chapter 1 analyzes the recent turmoil in the banking sector and the challenges posed by the interaction between tighter monetary and financial conditions and the buildup in vulnerabilities[…]
By Gaston Gelos, Maria Soledad Martínez Pería, Erlend Nier, Fabian Valencia While many emerging economies have been using macroprudential policy tools for some time, their use to safeguard financial stability was only embraced more widely in response to the global financial crisis. This column takes stock of what we have learned about macroprudential policy, and[…]
By Mario Catalán, Fabio Natalucci, Mahvash S. Qureshi, Tomohiro Tsuruga IMF Bolg: Rising tensions could trigger cross-border capital outflows and increased uncertainty that would threaten macro-financial stability Link: Geopolitics and Fragmentation Emerge as Serious Financial Stability Threats
By Pinelopi K. Goldberg, Tristan Reed Data on global trade as well as capital and labor flows indicate a slowdown, but not reversal, of globalization post the 2008-09 financial crisis. Yet profound changes in the policy environment and public sentiment in the largest economies over the past five years suggest the beginning of a new[…]
The European Banking Authority (EBA) published its Annual Report that sets out the activities and achievements in 2022 and provides an overview of the key priorities for 2023. Link: EBA Annual Report highlights key achievements in 2022
The European Banking Authority (EBA) updated today the list of other systemically important institutions (O-SIIs) in the EU, which, together with global systemically important institutions (G-SIIs), are identified as systemically important by the relevant authorities according to harmonised criteria laid down in the EBA Guidelines. This list is based on year-end-2022 data and includes the[…]
IFC Bulletin, No 58 Proceedings of the 11th Biennial IFC Conference on “Post-pandemic landscape for central bank statistics”, BIS Basel, 25-26 August 2022. Link: Post-pandemic landscape for central bank statistics
By Yiping Huang, Xiang Li, Han Qiu, Changhua Yu By comparing business loans made by a BigTech bank with those made by traditional banks, this study finds that BigTech loans tend to be smaller, and the BigTech lender is more likely to grant credit to new borrowers than traditional banks in response to an expansionary[…]
By Ernest Dautović, Leonardo Gambacorta, Alessio Reghezza The ECB recommended that banks not pay out dividends during the COVID-19 pandemic. This column shows that the recommedation led to increased lending to non-financial corporations, with lending by complying banks around 2.2 percentage points stronger than lending by banks that did not change their plans. The effect[…]
By Paul De Grauwe, Yuemei Ji Since central banks started their fight against inflation, they have transferred massive amounts of their profits to banks. The authors of this column have suggested that minimum reserve requirements are a valid alternative, but they have met fierce resistance because they are seen as introducing distortions and departures from[…]