By Ralph De Haas and Çağatay Bircan After years of rising indebtedness and the Covid-19 pandemic, financially weak firms are constraining business dynamism across emerging Europe. This fourth in series of five columns looks at zombie lending and its economic implications. Zombie lending – the evergreening of cheap loans to unviable firms – turns out[…]
By Naoto Takemoto, Simon Jurkatis, and Nicholas Vause In less than two decades, the system of market-based finance (MBF) – which involves mainly non-bank financial institutions (NBFIs) providing credit to the economy through bonds rather than loans – has both mitigated and amplified the economic effects of financial crises. It mitigated effects after the global[…]
By Bassel Committee The Basel Committee provides additional information regarding the 2022 G-SIB assessment. Further details of the assessment include global denominators and individual bank indicators.The release accompanies the Financial Stability Board’s updated G-SIB list. These additional details will help understand the scoring methodology which assesses the systemic importance of global banks using indicators calculated[…]
By Press Financial Stability Board This press release reports that the Financial Stability Board (FSB) published the 2022 list of global systemically important banks (G-SIBs) using end-2021 data and applying for the first time the revised assessment methodology published in 2018 by the Basel Committee on Banking Supervision (BCBS). The BCBS published updated denominators used[…]
By Alain Naef, Eric Monnet, Camille Macaire, Arnaud Mehl, Barry Eichengreen The share of China’s renminbi in global reserve portfolios is around 3%, compared to 60% for the US dollar. This column argues that the renminbi can play a more important role in the future, even in the absence of full financial liberalisation. This process[…]
By Beatrice Weder di Mauro, Jeromin Zettelmeyer, Tobias Tröger, Nicolas Véron, Jean Pisani-Ferry, Franz C. Mayer, Philippe Martin, Jan-Pieter Krahnen, Thorsten Beck Although more progress has been achieved than most observers could have imagined 12 years ago, the European Banking Union still has important gaps and deficiencies. A new CEPR Policy Insight asks why it[…]
Galina Hale and Bhavyaa Sharma from UC Santa Cruz are working on a meta-analysis paper of climate risk pricing. If you can suggest papers they should include in the meta-analysis, please suggest them via this form: https://forms.gle/g6ZZFUECsoUQfi5dA
By Jean Imbs, Laurent Pauwels The pandemic and the war in Ukraine have resuscitated concerns over exposure to foreign shocks. But while measures of ‘openness’ abound, their ability to capture the influence of foreign developments on domestic outcomes remains speculative. This column uses an international model with rich linkages to explore the ability of several[…]
The Covid-19 pandemic and the war in Ukraine have furthered a sustained retreat from global banking. The funding sources of local banking systems have shifted from cross-border to local and, within cross-border, from inter-office to unrelated sources. An increased share from local sources could improve the stability of funding, but greater cross-border funding from unrelated[…]
Central banks and other supervisory authorities have made significant efforts to collect borrower-level data on debt vulnerabilities. Do such data add to the information in aggregate measures? We find that statistics about household and non-financial corporate borrowers with low repayment capacity help to explain changes in non-performing loans and bankruptcies that aggregate measures would have[…]