By Kristina Bluwstein, Sudipto Karmakar, and David Aikman Inflation reached almost 9% in July 2022, its highest reading since the early 1990s. A large proportion of the working age population will never have experienced such price increases, or the prospect of higher interest rates to bring inflation back under control. In recent years, many commentators[…]
By Beiträge von Redaktion What do we know about the holders of bail-inable securities in the Banking Union? Those questions and more is to be answered in this in-depth analysis by FMF cooperation partner Leibniz Institute for Financial Research SAFE. Link: SAFE White Paper: Is there a ‘retail challenge’ to banks’ resolvability?
By Financial Stability Board (FSB) This report presents the results of the FSB’s annual global monitoring exercise, covering 29 jurisdictions that account for around 80% of global GDP. The report mainly covers developments in 2021, during which most economies experienced a better-than-expected recovery from the COVID-19 shock, in many ways because of the extraordinary steps[…]
By Matteo Crosignani, Thomas Eisenbach, and Fulvia Fringuellotti To assess the vulnerability of the U.S. financial system, it is important to monitor leverage and funding risks—both individually and in tandem. In this post, the authors provide an update of four analytical models aimed at capturing different aspects of banking system vulnerability with data through 2022:Q2,[…]
By Bank for International Settlements (BIS) The Basel Committee on Banking Supervision today issued a third report on its evaluation of the impact and effectiveness of implemented Basel reforms. Evaluation of the impact and efficacy of Basel III reforms sets out the Committee’s first holistic evaluation of how the reforms have affected bank resilience and systemic[…]
By Rens van Tilburg, Seraina Grünewald, Dirk Schoenmaker, and Arnoud Boo Climate risks are building up on banks’ balance sheets. Supervisory reviews show that banks are not well prepared. Yet, supervisors have been slow to include climate risks in minimum capital requirements. This column argues that doing so would speed up the transition to a[…]
By Luc Laeven, Angela Maddaloni and Caterina Mendicino What are the trade-offs involved in the implementation of macroprudential and monetary measures? And how do monetary and macroprudential policies interact? Recent research conducted at the European Central Bank (ECB) tackles these questions both theoretically and empirically. Luc, Angela, and Caterina argue that monetary and macroprudential policies[…]
By Ulrich Bindseil and Jürgen Schaaf Amid the widespread fallout in crypto markets following the collapse of a major crypto exchange, The ECB Blog takes a look at where we stand with Bitcoin. Link: Bitcoin’s last stand
By Financial Stability Board The Financial Stability Board released a progress report that describes progress over the past year and planned work by the Board, as well as by standard-setting bodies (SSBs) and other international organisations, to enhance the resilience of non-bank financial intermediation (NBFI) under the FSB’s NBFI work programme. The report addresses factors[…]
By Financial Stability Board New shocks may expose a number of current vulnerabilities while a number of vulnerabilities associated with structural changes are emerging. This annual report provides an overview of the FSB’s work to tackle a number of current and emerging vulnerabilities. The report also emphasises that, in the face of the current challenges[…]