Bank Underground Blog entry by Simon Whitaker “Digital currencies and the tokenisation of financial assets could speed up the movement of money and assets between institutions and across borders. Historically, the liberalisation of capital flows led to debates about the impact on macroeconomic and financial stability. Bouts of instability – for example the 2008 global financial[…]
ECB Blog entry by Claudia Buch and Isabel Schnabel “This blog post explains the role that the Eurosystem’s refinancing operations play within the ECB’s operational framework. It emphasises that, as excess liquidity becomes less ample, the ECB, both as a monetary policy authority and as a supervisor, expects that banks should consider these operations as an[…]
BIS Bulletin by Julián Caballero, Sebastian Doerr, Aaron Mehrotra and Fabrizio Zampolli Link: BIS Bulletin: How far can digital innovation improve credit to small firms in emerging market economies?
Bank Underground Blog Entry by Kristina Bluwstein and Alba Patozi “Measuring financial stability is very difficult. Measuring the effectiveness of policies affecting financial stability even more so. Not only is the objective of financial stability an elusive concept, but policies targeting financial stability are often complex, technical, and very slowly implemented. In spite of this,[…]
by the European Central Bank The supervisory priorities for 2025-27 reflect ECB Banking Supervision’s medium-term strategy for the next three years. They are set by the Supervisory Board of the ECB, reviewed annually, and are based on a comprehensive assessment of the main risks and vulnerabilities for supervised entities. They also take account of the[…]
Bank of Canada Staff Analytical Note 2024-26by Patrick Aldridge, Jabir Sandhu and Sofia Tchamova “We examine the trading behaviour of foreign central banks and its potential impact on liquidity in the Government of Canada (GoC) bond market. Our analysis builds on recent projects from staff at the Bank of Canada aimed at better understanding how[…]
Bank for International Settlements – Monetary and Economic Department The BIS Quarterly Review includes analysis on recent developments in financial markets, inflation targeting, monetary policy transmission to housing markets, large language models and the architecture of international banking. Link: BIS Quarterly Review (December 2024)
VoxEU Columnby Jin Cao, Emilia Garcia-Appendini, Cédric Huylebroek Incumbent banks often maintain an informational monopoly over their borrowers, making it difficult to switch to competing lenders or negotiate better terms. This column argues that deposit relationships could be a solution, thereby contributing to more competitive lending markets. It shows that firms with deposit relationships at[…]
New York FED Liberty Street Economics – Blog Entryby Sergio Correia, Stephan Luck, and Emil Verner Why do banks fail? In a new working paper, the authors study more than 5,000 bank failures in the U.S. from 1865 to the present to understand whether failures are primarily caused by bank runs or by deteriorating solvency.[…]
Part of the ECB’s Macroprudential Bulletin 25by Marcus Bierich, Pierce Daly, Aoife Horan, Ellen Ryan and Manuela Storz This special focus provides an initial granular analysis of bank lending to real estate investment funds (REIFs) in the euro area, while also considering the resulting potential financial stability implications. Link: A first look at banks loans[…]