February 2020: New VoxEU Column – Foreign exchange swaps: Hidden debt, lurking vulnerability

Foreign exchange swaps and forwards are a key instrument in the global financial system for hedging, position-taking and short-term funding. They involve the exchange of notional amounts at a future date and, as funding vehicles, they are akin to other forms of collateralised borrowing (e.g. repo). The amounts involved are huge, but the instruments remain[…]

February 2020: Bank for International Settlements Statistical Release: BIS international banking statistics at end-September 2019

Global cross-border bank claims continued to expand rapidly, growing at 9% year on year. As in previous quarters, the expansion was mainly due to claims on the non-bank sector, which grew at 12% year on year. The growth in claims on non-bank financial institutions was particularly strong (+17%). European banks’ cross-border lending, which went through a[…]

February 2020: EBA consults on the future of the EU-wide stress test framework

The European Banking Authority (EBA) launched today a public consultation on possible future changes to the EU-wide stress test. This discussion paper aims to present the EBA’s vision of the future of the EU-wide stress test and to collect comments and feedback from the different users. The proposal envisages two components owned by supervisors and[…]

February 2020: New VoxEU Column – Capital flows at risk: Taming the ebbs and flows

Capital flows to emerging markets have continued to be highly volatile since the Global Crisis. This column uses a new framework to show that country characteristics and policy responses matter for risks to future capital flows. It finds that good institutions support stable capital flows over the medium horizon, and while foreign exchange interventions seem[…]

February 2020: New VoxEU Column – Stress tests can limit international spillovers of accommodative monetary policy

After the Global Crisis, accommodative monetary policy also eased financial conditions in emerging market economies. This column shows that US banks contributed to the transmission of US monetary policy and that regulation and supervision attenuated it. Only US banks that performed well in the Fed’s annual stress tests expanded their lending to emerging markets in[…]

January 2020: New VoxEU Column – Exchange of information and bank deposits in international financial centres: An example of multilateral cooperation at work

Since the G20 declared in 2009 that “the era of bank secrecy is over”, jurisdictions have implemented an unprecedented range of measures designed to increase tax transparency by ensuring that information on foreign financial assets would be disclosed to tax authorities. This column presents the main results from a recent study on the impact of[…]

January 2020: 8 Research Fellowship positions “Long-Term Investors@UniTo”

LTI@UniTO is a think tank established as a joint initiative of the Università di Torino and of the major Italian market players in long term financing. Through the Fellowship program, LTI@UniTO aims to foster research in long-term investing and to assess its features, perspectives, contribution to growth and stability. The think tank supports independent research[…]

January 2020: New VoxEU Column – Spillovers and the optimal design of macroprudential measures: Evidence from Switzerland

Targeted macroprudential policies may spill across sectors, but this does not mean that they are ineffective. This column shows how the effects of a countercyclical capital buffer designed to curb house price growth in Switzerland spilled over into commercial lending. But a model that matches the uncovered spillovers in volumes and interest rates shows that[…]

January 2020: World Bank “Global Economic Prospects – Slow Growth, Policy Challenges”

Global Outlook: Fragile, Handle with Care. Global growth is expected to recover to 2.5 percent in 2020—up slightly from the post-crisis low of 2.4 percent registered last year amid weakening trade and investment—and edge up further over the forecast horizon. This projected recovery could be stronger if recent policy actions—particularly those that have mitigated trade[…]