by Monica Balan and Raihan Zamil Periodic episodes of banking sector distress invariably expose weaknesses in banks’ governance and risk management and shortcomings in supervision. A recurring challenge for supervisory authorities (SAs) is the lack of an explicit framework to define, manage, and communicate their tolerance for supervisory risk: the risk that supervisory actions or inaction fail to[…]

Prepared by Katharina Cera, Daniel Dieckelmann, Kalin Nikolov, Glenn Schepens and Oscar Schwartz Blicke Recent stress in parts of the US private credit market − including concerns about exposures in the software sector and redemption pressure in semi-liquid vehicles − has led to renewed focus on possible financial stability risks stemming from private credit and the potential[…]

By Nina Boyarchenko and Leonardo Elias The global corporate nonfinancial bond market is both a large investment asset class and a vital source of funding for nonfinancial firms. With $19 trillion outstanding at the end of 2024, a broad portfolio of corporate bonds would be expected to be well diversified. Yet, in 37 percent of[…]

by Daniel Fricke and Franziska Schobert Refinancing operations will play a central role in the Eurosystem as reserves continue to decline. This marks a shift from the past decade of asset purchases, but not from historical practice: prior to the global financial crisis (GFC), collateralized lending operations, in particular refinancing operations, already played a key[…]

by Simone Arrigoni, Agustin Benetrix, Tara McIndoe-Calder and Davide Romelli This Policy Brief explores the link between household financial holdings and demographic characteristics through the lens of a novel dataset that combines granular asset-level information from the Securities Holdings Statistics (SHS) with household-level characteristics from the Household Finance and Consumption Survey (HFCS). By integrating these[…]