By Christopher Clayton, Amanda Dos Santos, Matteo Maggiori, and Jesse Schreger China’s strategy for internationalising the renminbi involves controlling the access of foreign investors to the domestic bond market. This column argues China’s policy involves a trade-off between building a reputation as a country capable of providing a global store of value and risking disruptive[…]
By European Banking Authority The European Banking Authority (EBA) published today its annual quantitative Report on minimum requirement for own funds and eligible liabilities (MREL) with data as of December 2021. The Report is complemented by an analysis looking into the impact of the MREL framework on a number of relevant dimensions. As of 31[…]
By Skander J. Van den Heuvel The stringency of bank liquidity and capital requirements should depend on their social costs and benefi ts. This paper investigates their welfare effects and quantifies their welfare costs using sufficient statistics. The special role of banks as liquidity providers is embedded in an otherwise standard general equilibrium growth model. Capital[…]
By André Sapir There is a view that globalisation is in retreat. It has produced immense wealth, but has also generated huge inequality, leading to an economic and political backlash. Not everyone agrees with this view, though globalisation is seen as under geopolitical threat, in particular because of the rivalry between China and the United[…]
By Wenxin Du Foreign banking organizations (FBOs) in the United States play an important role in setting the price of short-term dollar liquidity. In this post, based on remarks given at the 2022 Jackson Hole Economic Policy Symposium, we highlight FBOs’ activities in money markets and discuss how the availability of reserve balances affects these[…]
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[…]