by Andrea Ajello, Michele Cavallo, Giovanni Favara, William B. Peterman, John W. Schindler IV, and Nitish R. Sinha This FEDS note proposes a new index that can be used to gauge broad financial conditions and assess how these conditions are related to future economic growth. The index is broadly consistent with how the FRB/US model[…]
by Bryan Hardy and Sonya Zhu This special feature of the BIS Quarterly Review examines international banks’ deposit funding – traditional deposits, repos and interbank lending. The authors lay out a framework to interpret the observed evolution in the level and composition of this funding. Netting out interbank lending and abstracting from the effect of central bank[…]
By Claudia Buch (Vice-President of the Deutsche Bundesbank) Link: Rethinking the prudential regulation of banks
By the European Banking Authority The European Banking Authority (EBA) updated the 13 systemic importance indicators and underlying data for the 32 largest institutions in the EU whose leverage ratio exposure measure exceeds EUR 200 bn. This disclosure includes updated data items specific to the recognition of the Banking Union and of institutions that are[…]
By the European Banking Authority Link: EBA publishes the results of its 2023 EU-wide stress test
By Kristin Forbes, Christian Friedrich and Dennis Reinhardt Recent episodes of financial stress, including the ‘dash for cash’ at the onset of the Covid-19 (Covid) pandemic, pressure in the UK’s liability-driven investment funds in 2022, and the collapse of Silicon Valley Bank in 2023, were stark reminders of the vulnerability of financial institutions to shocks[…]
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[…]