by Francesca Diluiso, Barbara Annicchiarico and Marco Carli While climate change is often seen as a long-term concern, climate mitigation policies can have different short-term effects, since they affect the transmission mechanism of conventional macroeconomic shocks.In a new working paper, the authors show that cap-and-trade schemes lead to lower volatility in GDP and financial variables, and[…]
by Raphael Auer, Giulio Cornelli and Christian Zimmermann We present a ranking of journals geared toward measuring the policy relevance of research. We compute simple impact factors that count only citations made in central bank publications, such as their working paper series. Whereas this ranking confirms the policy relevance of the major general interest journals in the field of[…]
by the Financial Stability Board The FSB developed key performance indicators (KPIs) to operationalize the monitoring of the targets set by the G20 in order to address challenges in cross-border payments. These KPIs measure either directly or indirectly the extent to which the targets are being met, where progress is being made and where challenges[…]
by Whitney Zhang Referring to the NBER Working Paper Bank Branch Density and Bank Runs by Efraim Benmelech, Jun Yang, and Michal Zator this article points out that stock prices of banks with low branch density experienced larger declines around recent bank failures. The authors attribute these declines to a greater risk of large deposit outflows. Link: The Digest No.[…]
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[…]